Tensions push WTI near $100, Brent above $111 as Hormuz risk hangs over global energy markets

Oil prices continued their upward trajectory as of early Wednesday, April 29, 2026, driven by persistent anxieties surrounding the ongoing risks faced by tankers crossing the Strait of Hormuz.

According to the latest market data from 5:54 AM Beijing time, benchmarks showed significant gains across the board, even as traders digest the UAE's decision to quit OPEC and OPEC+ effective May 1, 2026.

WTI, the US benchmark for crude futures, jumped 3.69% to $99.93 ($3.56 higher) while Brent Crude climbed nearly 3% to $111.2 (up by $2.99).

Murban, a Gulf crude benchmark stood at $107.2, 2.91% higher while Natural Gas also inched 0.35% to $2.559.

Market drivers

The primary catalyst for this surge remains the geopolitical deadlock in the Middle East.

Markets remain highly reactive to the stalled peace negotiations between Washington and Tehran, as well as the continued restriction of shipping through the Strait of Hormuz — a vital artery for approximately one-fifth of global crude oil and LNG supplies.

Despite recent diplomatic efforts and proposals by Iran to potentially reopen the waterway in exchange for deferring nuclear discussions, traders remain skeptical.

Consequently, energy prices are projected to surge by 24% throughout 2026, reaching their highest levels since the 2022 invasion of Ukraine.

Analysts from the World Bank and S&P Global caution that even if traffic through the strait returns to normal, tighter fundamental supply and the need to rebuild inventories will likely keep prices elevated through the remainder of the year.