Crude Oil Surges Past $90 as Strait of Hormuz Standoff Triggers Supply Panic Across Global Markets

Global energy markets are reeling from a fresh wave of panic as crude prices surged well beyond $90 a barrel, driven by severe shipping bottlenecks in the Strait of Hormuz following military strikes between the United States and Iran.

Brent crude futures hovered around $90.74 per barrel in early trade, gaining 0.58 per cent on the day after a 3.5 per cent rally earlier in the week, marking a steep 41.80 per cent surge over the past year.

Market analysts warning of potential $100-plus crude point to shipping telemetry showing traffic through the vital maritime corridor crippled down to a trickling five vessels a day, leaving importers across Asia and Europe scrambling for alternatives.

Supply Fears Drive Benchmark Crude Rally

The sharp upward trajectory in energy prices reflects deep-seated anxieties over prolonged physical disruptions through the world’s most crucial oil transit choke point. The Strait of Hormuz, which normally facilitates nearly 20 per cent of global daily petroleum consumption, remains effectively paralyzed as insurance premiums soar and commercial fleets alter routes.

The sustained price floor above $90 poses immediate inflationary risks for major net energy importers like India, where higher landed crude costs threaten domestic fuel pricing stability and trade balances.

Military Strikes Spark Maritime Shockwaves

The market volatility follows a dramatic flare-up in hostilities across the Persian Gulf. US Central Command (CENTCOM) launched targeted air strikes against Iranian positions including coastal facilities near Bandar Abbas, Chabahar, and Larak Island, citing the need to neutralize threats against commercial shipping and American personnel.

Tehran responded within hours, with the Islamic Revolutionary Guard Corps (IRGC) launching missile and drone salvoes aimed at US military footprints across Jordan, Bahrain, Kuwait, and Iraq. While air defence batteries intercepted several incoming projectiles, the direct exchange coupled with stern warnings from US President Donald Trump and Iranian military commanders, has shattered short-term hopes for diplomatic resolution in the strategic waterway.