FX.co ★ Crude Oil Surges to July-2022 Highs

Crude oil futures surged more than 5% to surpass $99 per barrel on Friday, hitting their highest level since July 2022, as fresh disruptions in the Strait of Hormuz overshadowed recent diplomatic overtures. Although President Trump extended the strike deadline for Iranian energy infrastructure to April 6, market skepticism remains elevated amid reports that the Pentagon is considering deploying an additional 10,000 U.S. troops to the region. Tensions escalated further after Iran’s Islamic Revolutionary Guard Corps vowed a harsh response to any transit through the waterway, having already turned away two Chinese vessels and watched a Thai-flagged cargo ship run aground. Despite earlier reports of a brief passage by ten tankers, the de facto closure of this narrow chokepoint continues to constrain roughly one-fifth of global energy flows and has driven WTI prices up 40% since the conflict began. Investors are now weighing the risk of a potential ground conflict against the effectiveness of proposed insurance programs designed to support future shipping.