Brent oil near $100 as Iran vows to keep Strait of Hormuz shut

Brent oil was trading near $100 a barrel after one of the most volatile trading weeks on record, as investors braced for more upheaval post Iran pledging to keep the Strait of Hormuz shut.

Brent was modestly lower after increasing 9.2% on Thursday, while West Texas was trading near $96.

In his first public comments since succeeding his father, Iran’s new supreme leader Mojtaba Khamenei said the Islamic Republic would seek to ensure the critical waterway for crude and natural gas stays closed.

In a further effort to try and tame surging prices, the US granted a temporary waiver for the purchase of Russian oil that was loaded onto vessels before March 12. The latest measure is broader than a directive earlier this month, when only India was cleared to increase its purchases.

The Energy Agency warned on Thursday that the supply disruption is the largest in the history of the global oil market, a day after its members agreed to a historic release of emergency reserves to try and cool prices. US President Donald Trump also struck a defiant tone, offering little relief to energy markets as the war in Iran nears its third week.

The near-halt to shipping through the narrow Strait of Hormuz near Iran and the Arabian Peninsula has choked off shipments of crude, natural gas and products such as diesel to global customers, driving up energy prices. It’s raised fears of an inflation crisis and is starting to hit some economies

Iran has likely started laying mines in the strait, according to the UK, which will make shipping even more perilious for those considering passing through the waterway. Since the war began on Feb. 28, vessel traffic has slowed to a trickle through the channel, including Iranian tankers carrying oil.

The US Navy could start escorting tankers through Hormuz by the end of the month, Energy Secretary Chris Wright said on CNBC, while Treasury Secretary Scott Bessent told Sky News that he believed the navy will be escorting vessels “as soon as it is militarily possible.”

WTI has traded in a band of about $43 this week, the widest range since the depths of the pandemic when prices turned negative. Brent has swung in a range of around $38. Wild swings have being exacerbated by financial flows from options markets to exchange-traded funds.

That volatility is likely to continue with no signs of the war ending soon. In a social media post on Thursday, Trump said preventing Iran from having nuclear weapons and being a threat to the Middle East is “of far greater interest and importance to me” than the cost of oil.

With inputs from Bloomberg

Also Read: Asian shares decline tracking US peers as oil remains in focus