Oil Prices Surge Past $100 Amid Unresolved Strait of Hormuz Supply Fears

Oil markets rebounded above the $100 threshold on Thursday, driven by persistent worries over potential disruptions in crude shipments through the Strait of Hormuz. Despite a temporary U.S. waiver lifting sanctions on some Russian tankers at sea, the move did not assuage fears about long-term supply stability in a region already under geopolitical strain. The failure of the waiver to restore market confidence highlights deepening concerns about energy security, particularly as regional tensions continue to threaten key shipping lanes. The situation has triggered a shift in investor sentiment, with the broader energy sector responding to heightened risk perceptions. The XLE index, a benchmark for energy stocks, showed notable volatility amid the uncertainty. Market indicators such as the VIX, a measure of expected market volatility, also rose, signaling increased risk aversion among investors. This reflects a broader unease extending beyond oil futures into equities and fixed income, where inflation and rate outlooks remain sensitive to energy price swings. The persistence of supply concerns underscores the fragility of global energy flows, even in the face of temporary policy adjustments. With the CL=F crude oil futures contract trading above $100, the market continues to price in geopolitical risk, leaving energy-dependent economies and industries vulnerable to further price spikes.