Oil: Brent “on fire” above $119 – Alarm over the Strait of Hormuz and a new energy shock

The price of oil soared with Brent Crude Oil up over $119 and West Texas Intermediate jumping 7% on blockade fears for Sea of Hormuz.

In a wheel of strong gains, international energy markets, with Brent Crude Oil recording multi-year highs and West Texas Intermediate following with strong dynamic momentum, as increasing geopolitical risks and global supply disruption scenarios bring fears of a new energy crisis, centred on the critical Strait of Hormuz passage through which a significant proportion of global oil flows pass, heightening concerns about further revaluations in fuel, transport and commodities.

The price of North Sea Brent, an international reference for oil, today topped $119 a barrel, reaching its highest level since 2022 and the first months of the war in Ukraine.

Fears

Fears of a prolonged blockade of the crucial Strait of Hormuz resulted in Brent rising 7.58% at around 8.15pm GMT to $119.69.

The US equivalent, West Texas Intermediate (WTI), was up 7.60% at $107.52 a barrel.