Brent crude surged and retreated as Iran-related disruptions in the Strait of Hormuz tightened global energy supply chains.
Geopolitical instability in the Strait of Hormuz drove sharp fluctuations in oil markets during May, with Brent crude trading above $90 amid supply fears. Roughly 20% of global oil and LNG flows typically pass through the chokepoint, where ongoing tensions disrupted shipping routes and tightened inventories.
Analysts warned of a “danger zone” as disruptions spread beyond crude into LNG, refined products, and industrial supply chains. However, late-month reports of a potential U.S.-Iran peace framework briefly pushed prices lower, with Brent retreating toward the mid-$90 range.
The volatility underscored how energy markets now react to both physical disruptions and diplomatic developments, reshaping trade patterns and pricing dynamics.