Global oil markets traded in a narrow but volatile range on Monday as geopolitical tensions around the Strait of Hormuz kept traders on edge, pushing prices slightly higher even as broader financial markets showed strength. Brent crude hovered near the USD 80 per barrel mark, while U.S. benchmark West Texas Intermediate also advanced modestly.
Brent crude stood at around USD 80.2 per barrel in recent trade, easing slightly intra-day but still close to levels not far below Friday’s close, when it ended nearly 0.9 per cent higher. Meanwhile, WTI crude was seen at USD 76.27 per barrel, up by USD 0.42, or 0.55 per cent.
The primary driver behind oil’s resilience remains heightened geopolitical risk around the Strait of Hormuz, a critical chokepoint through which roughly a fifth of global oil supply flows.
The situation intensified after Iran reportedly exited diplomatic discussions in Switzerland, following renewed threats of military action from former U.S. President Donald Trump over Tehran’s alleged backing of Hezbollah.
Oil’s cautious upward movement comes despite a broadly positive tone in global equity markets. U.S. indices posted gains, with the Nasdaq 100 climbing 2.48 per cent to 30,406.19 and the Nasdaq Composite rising 1.91 per cent. The S&P 500 added 1.08 per cent, while the Dow Jones Industrial Average edged up by 0.14 per cent.
Oil prices have remained highly volatile, with concerns mounting over potential supply disruptions at the Strait of Hormuz, a critical maritime chokepoint that handles nearly 20 per cent of global oil flows, heightening inflation risks for economies worldwide.
Earlier on April 30, Brent climbed near a multi-year high of USD 126 a barrel, gaining nearly 7 percent intraday, extending the momentum built on the back of a strong surge earlier. Before, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating West Asia tensions.
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