Brent Crude Surges To $97 After Steepest Drop Since 2020 Amid Hormuz Crisis
Brent rebounds to $97 after 13% drop, Hormuz uncertainty reignites supply fears.
Brent crude oil surged to $97 per barrel on April 9, 2026, rebounding sharply after logging its steepest single-day drop since 2020 amid persistent uncertainty over the Strait of Hormuz. The benchmark for June delivery climbed 2.1% to $96.73, with intraday highs touching $97.93, while West Texas Intermediate (WTI) for May rose 2.7% to $96.99. This volatility follows a 13% plunge in the prior session, triggered by initial optimism over the US-Iran ceasefire but reignited by Tehran's new navigation controls in the strait.
The Hormuz chokepoint, which channels 20% of global oil and significant LNG flows, remains a flashpoint after weeks of blockade during the recent US-Iran conflict. Iran's April 8 announcement of mandatory alternative routes through its waters, requiring vessel permissions, has spooked markets despite the truce. Shipping disruptions persist, with traffic down drastically and insurers hesitant, amplifying supply fears from Gulf exporters like Saudi Arabia and UAE.
Prices had spiked beyond $120 earlier in the crisis—peaking at $126—before ceasefire hopes eased them temporarily. Now, analysts warn of renewed shortages if Iranian patrols enforce toll-like fees or restrictions, with no quick normalization expected. Global drawdowns of 6 million barrels per day underscore the shortfall, hitting refineries and raising input costs worldwide.
Also Read: Gold Rises Rs 3,200 to Rs 1.56 Lakh, Silver Jumps Rs 11,000 on Ceasefire Relief
The rebound reflects layered risks: Israel's Lebanon operations straining the truce, potential Iranian retaliation, and limited bypass options like East-West pipelines. OPEC+ output cuts offer no buffer against 11 million barrels per day offline from the Gulf. India, a major importer, faces higher fuel costs amid elections.
Market watchers eye Islamabad talks for de-escalation signals, but Brent's 50-day average of $90.49 signals upward momentum. Year-highs near $119 highlight 2026's turbulence, with forecasts eyeing $112 by quarter-end if disruptions linger.Consumers brace for pump prices climbing 10-15% globally, stoking inflation. The swing—from crash to surge—exposes oil's sensitivity to Middle East geopolitics, with Hormuz as the ultimate leverage point.
Also Read: ONGC, HPCL, BPCL, GAIL, IGL, Gujarat Gas In Focus Ahead Of Q4 Results
