Oil price surges after Iran closes Strait of Hormuz

The price of Brent crude oil surges to $94 per barrel after Iran confirms that the Strait of Hormuz remains closed. That contradicts statements by Donald Trump, who earlier claimed an agreement had been reached to fully reopen the strait. In five weeks, the oil price rises by nearly 38% from the low of $68 in July.

In short:

• Brent oil rises to $94 per barrel, an increase of nearly 38% in five weeks from a low of $68.
• Iran says the Strait of Hormuz remains closed, contradicting Trump’s claim that an agreement had been reached.
• The conflicting reports about the strait are causing uncertainty in the energy market.

Sharp rise from July low

From early July, the Brent oil price falls to a low of $68 per barrel. In the weeks that follow, the price recovers strongly and now reaches $94, representing an increase of nearly 38% in just five weeks. The chart clearly shows a V-shaped recovery.

The rebound is closely linked to the tense situation around the Strait of Hormuz, one of the busiest oil supply routes in the world. A significant portion of global oil trade passes through this strait, meaning blockades directly affect energy prices.

Iran and Trump contradict each other

Trump has said a framework has been reached to fully reopen the Strait of Hormuz. Iran, however, immediately contradicts this and states that the strait remains closed. The conflicting statements are causing major uncertainty in the energy market and push the oil price higher.

Tensions in the Middle East have previously also hit the crypto market. For instance, the Bitcoin price earlier fell below $63.000 due to the threat of an attack on Iran. A Dubai-based exchange has also previously been under scrutiny for moving at least $4 billion through an Iran network. The geopolitical situation in the region therefore remains a factor affecting multiple markets.