Oil prices rise amid ongoing blockade of the Strait of Hormuz

Global oil prices have surged, with Brent crude briefly exceeding $90 per barrel, as the blockade of the Strait of Hormuz continues to disrupt energy flows. The market volatility follows the collapse of immediate diplomatic expectations, as both the United States and Iran have issued incompatible demands, stalling efforts to reopen the strategic maritime passage.

U.S. President Donald Trump has demanded compensation from Iran for alleged casualties during the current conflict, while Tehran, represented by newly appointed National Security Council Secretary Mohsen Rezaei, insists the U.S. must end hostilities and unfreeze Iranian assets abroad. Iran has further escalated its rhetoric by proposing environmental fees on ships passing through the strait, citing historical pollution damages in the Persian Gulf.

Analysts warn that if the stalemate persists, the market may face a critical supply shortage, potentially pushing prices to $120–$140 per barrel. Reflecting the broader economic impact, the International Energy Agency (IEA) has revised its 2026 global demand forecast downward by 1.6 million barrels per day, citing the ongoing regional conflict and rising fuel costs. Current market status remains uncertain, as neither side shows clear signs of compromising on their preconditions for reopening the vital waterway.