Brent Crude Holds Above $100 for Third Consecutive Session Amid Strait of Hormuz Closure

Global oil markets surged this week as Brent crude, the international benchmark, sustained trading above $100 a barrel for three consecutive sessions. The price rally follows the escalation of hostilities between the United States, Israel, and Iran, which has led to the effective closure of the Strait of Hormuz—critical maritime chokepoint for over a fifth of global oil and LNG trade. This disruption has triggered a systemic supply shock, intensifying fears of tighter energy availability. As a result, Liquid Natural Gas (LNG) prices have risen by 50% since the U.S. and Israeli military actions against Iran. The ongoing conflict has significantly altered market dynamics, prompting immediate repricing across energy markets and increasing volatility. The situation underscores the vulnerability of global energy infrastructure to regional geopolitical flashpoints, with potential ripple effects across industrial, transportation, and power sectors. The closure of the Strait of Hormuz has compounded supply concerns, particularly given its role as a key transit route for crude and LNG shipments from the Middle East to Asia, Europe, and North America. With alternative shipping routes either longer or less efficient, the market faces a structural tightening. The broader energy sector, including defense-related infrastructure and energy logistics companies, is now under increased scrutiny. Market participants are reassessing risk premiums, with volatility indicators such as ^VIX reflecting heightened uncertainty. The situation remains fluid, but the immediate impact on energy prices and trade flows is already evident.