New York: On Thursday 2nd April 2026, after US President’s Speech on Iran War, Oil prices sharply increased owing to fear of further shocks to Oil supply due to closure of straight of Hormuz.
Brent crude prices rose about 8% to $109 per barrel and West Texas Intermediate crude jumped over 12% to $112, marking their biggest gains since 2020.
Tensions in the Middle East continue to drive markets, with Donald Trump signaling aggressive action, while uncertainty remains due to no clear signs of a ceasefire. Analysts warn that escalating conflict or risks to shipping routes like the Strait of Hormuz could push oil prices even higher.
The United Kingdom is leading talks with around 40 countries on reopening the Strait, though the United States is not participating. Trade disruptions have already affected oil pricing and transport in the region.
Meanwhile, OPEC+ may increase output, but any added supply will take time. In Russia, attacks linked to the Ukraine conflict have cut export capacity significantly, raising the risk of production declines.
International Energy Agency chief warned that Europe’s economy could begin feeling the impact of supply disruptions in April, as earlier shipments secured before the war are no longer enough to cushion the region.
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