Crude oil prices extended their upward momentum on Tuesday, supported by persistent geopolitical tensions in the Middle East and supply disruptions through the critical Strait of Hormuz.
Market participants remain focused on the ongoing stand-off between the United States and Iran, which has significantly impacted global energy flows and heightened concerns over supply shortages.
U.S. West Texas Intermediate (WTI) crude futures for June were trading at $97.06, up 0.72%, while Brent crude futures for July stood at $102.20, rising 0.31% in early trade.
The Strait of Hormuz, a vital shipping route responsible for nearly 20% of global oil and gas flows, remains largely constrained amid the ongoing conflict.
Iran’s decision to restrict shipping activity, coupled with the United States maintaining its blockade on Iranian ports, has led to significant disruptions in the movement of crude oil.
Ship-tracking data indicates that several Iranian oil tankers have been forced to turn back due to the blockade, further tightening supply in global markets.
Although a liquefied natural gas tanker managed by Abu Dhabi National Oil Co has successfully crossed the strait and is reportedly nearing India, overall traffic remains well below normal levels.
Efforts to resolve the conflict have stalled, with recent negotiations between the two nations failing to produce a breakthrough.
Iran’s latest proposal reportedly avoids addressing its nuclear programme until hostilities cease and shipping disputes in the Gulf are resolved.
However, U.S. President Donald Trump has expressed dissatisfaction with the proposal, leaving the situation at an impasse and prolonging uncertainty in energy markets.
An earlier round of face-to-face talks collapsed last week, further diminishing hopes of a near-term resolution.
Read More: Global LNG Supply Disruptions from Middle East Conflict Expected to Persist Until 2027: IEA!
Analysts note that the focus has shifted from diplomatic rhetoric to actual supply flows, with physical disruptions now playing a dominant role in price movements.
Even if a resolution is eventually reached, experts caution that production outages and logistical challenges could delay a full recovery in supply for several months.
Prior to the conflict, between 125 and 140 vessels transited the Strait of Hormuz daily. Current volumes remain significantly lower, highlighting the scale of disruption.
Brent crude futures have extended their gains for a seventh consecutive session, recently climbing to $108.68 per barrel after a strong rally in the previous session.
Similarly, WTI crude prices have continued to rise, reflecting sustained bullish sentiment driven by tightening supply conditions.
Despite volatility, oil prices remain within their broader 52-week ranges, with WTI fluctuating between $54.98 and $117.63, and Brent between $58.50 and $119.50.
Crude oil markets remain firmly influenced by geopolitical developments, with the ongoing U.S.-Iran conflict continuing to disrupt supply chains and support higher prices. Until there is a clear resolution or improvement in shipping flows through the Strait of Hormuz, oil prices are likely to stay elevated and volatile, reflecting persistent uncertainty in global energy markets.
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Published on: Apr 28, 2026, 8:21 AM IST
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