Crude oil prices surged on Friday, with WTI for May delivery climbing $5.32 (5.63%) to $99.80 per barrel amid escalating tensions in the Middle East. Iran’s Islamic Revolutionary Guards Corps (IRGC) has asserted control over the Strait of Hormuz, a critical oil transit route, effectively halting vessel traffic and warning of severe repercussions for any ships associated with the U.S. or Israel. This development raises significant concerns over supply disruptions, as oil-producing nations in the region have already begun to cut output.

The implications for the energy market are profound, as analysts warn that the current supply constraints could extend beyond Asia, potentially impacting European markets as well. The situation contradicts U.S. diplomatic efforts, with President Trump extending a pause on military actions against Iran despite claims of progress in negotiations.

Market professionals should brace for potential volatility in oil prices, as the ongoing geopolitical tensions suggest a heightened risk of further supply disruptions and price spikes in the near term.

Source: nasdaq.com