economy
April 4, 2026
ENERGY SHOCK ON THE HORIZON Blockade of the key strait pushes oil prices to the sky
Blockade of the key strait pushes oil prices to the sky
TL;DR
- JP Morgan forecasts oil prices could reach $150 per barrel if the Strait of Hormuz remains disrupted until mid-May.
- The bank expects oil prices to soon trade at $120-$130 per barrel.
- US WTI crude oil reached $111.50 per barrel, surpassing Brent at $109.
- Disruptions in the Strait of Hormuz, a vital route for 20% of global oil and LNG, have impacted shipping since early March.
- Even with an immediate, unconditional reopening of the strait, normalization of global oil production and refinery supply chains would take three to six months.