WTI settles above $100 for first time since 2022 amid Iran war escalation

(Bloomberg) - U.S. crude prices climbed above $100/bbl for the first time since 2022, as the escalating Iran conflict and ongoing disruption in the Strait of Hormuz continue to constrain global oil flows and tighten supply. 

West Texas Intermediate (WTI) settled near $103/bbl, while Brent crude approached $113/bbl, as limited vessel traffic through Hormuz has effectively choked off a key artery for global energy shipments. The strait typically handles about one-fifth of worldwide oil flows.

With shipping severely restricted, market concerns are increasingly centered on physical supply availability rather than broader financial conditions. Any further damage to oil and gas infrastructure in the Persian Gulf—particularly export facilities such as Iran’s Kharg Island—could significantly escalate supply losses.

The conflict has already prompted a buildup of U.S. military presence in the region, alongside continued attacks involving regional actors, raising the risk of further disruption to production and export operations.

Analysts say the move above $100/bbl signals a shift in market expectations, reflecting a prolonged period of constrained supply and elevated geopolitical risk. At the same time, the potential for rapid escalation or de-escalation continues to inject volatility into crude markets.

Despite diplomatic efforts, uncertainty remains high, with traders closely watching developments in Hormuz and surrounding infrastructure. The ability of producers outside the region to offset supply losses remains limited in the near term, reinforcing upward pressure on prices.

As the conflict enters its fifth week, oil markets are increasingly being driven by physical disruptions and security risks across critical upstream and export systems in the Middle East.