US Crude Oil Surges Over 3.8% Past $100/Barrel as Hormuz Closure Fuels Fresh Supply Fears

US crude oil prices jumped more than 3.8% on Tuesday, briefly topping $100 per barrel and reaching their highest level since early April, as ongoing restrictions in the Strait of Hormuz kept global supply concerns elevated.

West Texas Intermediate (WTI) crude futures climbed as high as $101.85 intraday, up sharply from the previous close, before settling near the $99–$100 mark in early trading. The move marks a notable rebound, pushing the benchmark back above the psychologically important $100 threshold amid persistent uncertainty over one of the world’s most critical oil chokepoints.

The Strait of Hormuz, through which roughly one-fifth of global oil and liquefied natural gas shipments normally pass, has seen severely restricted traffic for weeks due to tensions involving Iran. Recent statements from Iranian officials reinforcing that the strait will not return to normal operations “under any circumstances” have renewed worries about prolonged disruptions, even as ceasefire talks have faltered or stalled.

Brent crude, the international benchmark, has followed a similar trajectory, trading well above $100 in recent sessions and approaching or exceeding $107–$110 in some reports as the Hormuz stalemate drags on.

Market participants are closely watching for any signs of diplomatic progress or military developments that could ease or further tighten flows through the strait. In the meantime, higher energy costs are expected to ripple through to gasoline prices and broader inflation concerns, particularly heading into the US driving season.

The latest surge comes as traders price in the risk of extended tightness, with some forecasts suggesting Brent could remain elevated for months if Hormuz constraints persist.