Oil Hits $100 as Tanker Attack Deepens Hormuz Crisis

NEW YORK (Azat TV) – Global energy markets reached a critical threshold on Monday as West Texas Intermediate (WTI) futures closed above $100 a barrel for the first time since 2022, fueled by the escalating conflict between the United States and Iran. The price surge follows a targeted drone strike on a Kuwaiti supertanker off the coast of Dubai, an incident that underscores the growing volatility within the Strait of Hormuz.

Energy Infrastructure Under Fire as Prices Surge

The attack on the Kuwaiti vessel, which was carrying over 2 million barrels of crude, occurred late Monday and resulted in a fire that authorities later brought under control. While no injuries were reported, the strike serves as a stark signal that critical energy infrastructure in the Persian Gulf is increasingly vulnerable. The incident has intensified market fears that the ongoing conflict, now entering its fifth week, will result in a sustained, total closure of the Strait of Hormuz, an artery that handles approximately 20% of global oil flows.

Strait of Hormuz Blockade Strains Global Supply

The blockade of the strait has effectively paralyzed commercial shipping, with Tehran permitting only a limited number of vessels to pass. As the conflict intensifies, President Donald Trump has warned of potential strikes against Iranian energy assets, including oil wells and the critical Kharg Island terminal, should the route not be reopened immediately. Treasury Secretary Scott Bessent confirmed that the U.S. is seeking to regain control of the waterway, though market analysts remain skeptical of the timeline for restoring freedom of navigation given the failure of similar long-term security efforts in the Red Sea.

Market Volatility and Economic Consequences

The breach of the $100-per-barrel mark is viewed by traders as a pivotal indicator of rising inflation and growth risks. Average U.S. retail gasoline prices have climbed to $3.99 a gallon, placing them on the precipice of a $4 threshold not seen since 2022. Financial institutions, including Macquarie Group Ltd., have warned that should the conflict persist into June with the strait remaining closed, futures could potentially reach $200 a barrel. Traders are increasingly moving to the sidelines, resulting in thin liquidity that has exacerbated price swings as the region braces for further escalation.

The surge in oil prices to triple digits represents a fundamental shift in the global economic landscape, moving beyond mere geopolitical posturing to a tangible threat against the infrastructure that sustains international energy trade; if the current military standoff continues, the resulting inflationary pressure will likely force a structural revision of global growth forecasts for the remainder of 2026.