Oil prices moved higher again as the blockade of the Strait of Hormuz entered its ninth week. WTI crude rose as much as 3% to around $99, while Brent gained about 2.46% and broke above $111, reaching its highest level since March.
US-Iran deadlock keeps pressure on crude
The main driver remains the confrontation between the US and Iran and the unresolved shipping disruption in the Strait of Hormuz. According to the source material citing CNBC, Iran recently sent a new proposal through Pakistan. The terms included lifting the maritime blockade, revising the framework for passage through the strait, and a commitment from the US not to take further military action. Trump rejected the proposal, and the nuclear program remains the central point of disagreement. The talks are still stuck. Oil has reacted accordingly.
A chokepoint tied to roughly 20% of global energy consumption
The market focus is clear because the strait carries about 20% of global energy consumption. With the blockade now lasting nine weeks, the International Energy Agency said the disruption is without precedent on the supply side. This is not just a headline risk. It is a transport and supply issue with direct pricing impact in the crude market.
ADNOC shifts loading routes toward Fujairah
In response to the disruption, Abu Dhabi National Oil Company, or ADNOC, has already guided international crude buyers to move loading activity to the port of Fujairah in the Gulf of Oman. The adjustment is aimed at reducing transport obstacles, but it also shows how seriously exporters are treating the blockage. As long as the strait remains closed, supply risks are likely to stay embedded in oil prices.
For now, the direction of US-Iran talks and the direction of crude remain closely linked, with the reopening of the strait still the central issue for the market.