Global oil prices are poised for their strongest monthly gain on record, with Brent crude nearing a 60% March surge due to the Iran war. US President Donald Trump indicated he is considering an exit from the conflict despite ongoing disruptions in the Strait of Hormuz. Tanker attacks continue to choke supplies.
Brent crude for May delivery traded near $119 a barrel, on track for a record over 60% March gain described as the most severe energy supply shock in history. The more active June contract edged up to around $108, while US West Texas Intermediate (WTI) has risen more than 50% this month.
Trump told allies short on jet fuel through the Strait of Hormuz to “take it,” claiming in a social media post that the US has sufficiently weakened Iran. The Wall Street Journal reported Trump has told aides he is ready to end the military campaign even if the Strait stays closed, deeming reopening too time-consuming. The US now aims to cripple Iran’s navy and missile stockpiles before scaling back operations.
Iran struck the Kuwaiti oil tanker Al-Salmi with a drone at Dubai’s port anchorage, causing hull damage. The fifth-week war has effectively closed the Strait of Hormuz, removing 10 to 12 million barrels per day from markets. US petrol prices topped $4 a gallon for the first time since August 2022.
Christoph Ebel, CEO of Tiberius Group, told Bloomberg Television: “I think we are approaching a scenario of exiting the conflict faster than many people think.” Rebecca Babin of CIBC Private Wealth Group noted moves toward an exit show “slight progress followed by successive setbacks.”
Military actions persisted, with Israeli strikes on Tehran targets, Saudi interceptions of drones, and a joint US-Israeli hit on Bahman port on Qeshm Island’s east side.
