Tensions in West Asia push oil prices higher: Strait of Hormuz blocked; Brent nears $110

Oil prices rose sharply after Donald Trump warned of “extremely hard” strikes against Iran. The disruption of oil flow through the Strait of Hormuz has increased supply concerns. Markets now expect continued volatility, with prices possibly crossing $110 per barrel.

Oil markets saw a strong jump on April 2. Brent crude crossed $107 per barrel, while West Texas Intermediate (WTI) moved above $108. This increase came after Donald Trump said the US could strike Iran “extremely hard” in the coming weeks. Investors reacted quickly. Stock markets in Europe and Asia fell as fears increased about a longer crisis. Many traders shifted focus to safe assets.

The biggest concern is the disruption in the Strait of Hormuz. This narrow waterway carries about 20% of the world’s oil supply. Since late February, tanker movement has slowed down or stopped due to the conflict. With fewer shipments moving, global supply has tightened, which has pushed prices higher. Analysts believe the situation may not improve soon, which could keep oil prices elevated. Higher oil prices also affect fuel costs. This could lead to rising inflation in many countries, adding pressure on consumers and governments.

Countries are trying to manage the crisis. Keir Starmer has called for talks with several nations to ensure safe shipping in the region. The aim is to restart oil movement and protect trade routes. However, tensions remain high. Iran has warned of strong retaliation if attacked. Reports of missile activity in the region have increased concerns about a wider conflict. Analysts say if the situation worsens, oil prices could cross $110 per barrel soon.