Oil Pushes Toward 100 Dollars as Gulf Conflict Disrupts Global Energy Supply
Brent crude has reached a five-week high as conflict in the Middle East severely restricts flows through the Strait of Hormuz. With global supply down millions of barrels per day, sustained prices near one hundred dollars threaten to reignite inflation and create a stagflationary headwind for the U.S. economy ahead of the November midterms.
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Brent crude reached a five-week high after conflict reduced Strait of Hormuz oil flows by ninety percent.
The Strait of Hormuz handles twenty percent of global energy, mostly serving China, India, and Japan.
A thirty-day closure of the passage adds a fifteen-dollar premium to every barrel of oil.
Rising diesel costs act as a supply shock tax that increases the price of groceries and freight.
Central banks cannot use interest rate hikes to fix energy shortages caused by geopolitical blockades.
High energy prices are currently draining one point six million barrels per day from global oil demand.
- 01Intro1 min
- 02The Chokepoint Collapses2 min
- 03The Hundred-Dollar Threshold2 min
- 04The Inflationary Pass-Through2 min
- 05Policy and Politics in the Crosshairs2 min
- 06Outro1 min
- 2026 Strait of Hormuz crisis
- What the closure of the Strait of Hormuz means for the global economy
- How Will the Iran Conflict Impact Oil Prices? - Goldman Sachs
- Oil market starts pricing in a prolonged Hormuz crisis - Reuters
- IEA cuts 2026 oil demand forecast on Hormuz disruption - CNBC
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