Oil Surges Past $100 as Iran Maintains Closure of Strait of Hormuz

Crude oil prices have breached the $100 per barrel mark, driven by escalating tensions in the Middle East. The surge comes as Iran continues to block the Strait of Hormuz, a critical maritime artery for global energy shipments. The closure persists despite a fragile ceasefire agreement, signaling deep instability in the region. The Strait of Hormuz is essential for the transit of a significant portion of the world's oil, and any prolonged disruption threatens global supply chains and increases inflationary pressures. While energy markets are reacting with extreme volatility, equity markets have displayed a surprising divergence. The S&P 500 turned higher, suggesting that investors may be pricing in a potential resolution or focusing on other macroeconomic drivers despite the immediate geopolitical risk. Traders remain on high alert as the situation evolves. The persistence of the blockade, even amidst diplomatic efforts, keeps the risk of a sustained energy price shock elevated for the foreseeable future.