Oil Extends Gains as Strait of Hormuz Tensions Shake Energy Markets

Oil prices climbed further in Wednesday trading as geopolitical tensions in the Middle East continued to disrupt shipping through the Strait of Hormuz, a key artery for global crude supplies.

Brent crude futures for May delivery rose 2.96% ($2.41) to $83.81 per barrel, extending gains after a roughly 12% surge over the previous two sessions. US WTI crude for April delivery also advanced 2.70% ($2.01) to $76.57 per barrel.

The rally comes as markets digest escalating military tensions in the region and await details of a potential US plan to escort oil tankers through the Strait of Hormuz, where shipping traffic has slowed sharply.

US President Donald Trump stated that Washington would ensure the continued free flow of global energy supplies but did not disclose how the US Navy might secure the vital shipping lane.

Analysts remain cautious about the proposal. ING warned that naval escorts could themselves become targets if hostilities escalate, suggesting the US may delay such measures until Iran’s ability to launch further attacks diminishes.

Supply risks remain a major concern. JPMorgan estimates that prolonged conflict could remove more than 3 million barrels per day from global oil production, potentially tightening an already fragile market balance.

Reflecting these risks, Standard Chartered raised its Brent price forecasts for the first half of the year and increased its full-year average outlook, citing intensifying geopolitical uncertainty in energy markets.

Safe-Haven Demand Lifts Precious Metals

Precious metals also rebounded as investors rotated back into safe-haven assets.

Gold futures for April delivery climbed 1.17% ($59.8) to $5,183.5 per ounce, recovering after a 3.5% decline in the previous session. Spot gold rose 1.61% to $5,170.87, signaling renewed demand for defensive assets.

Other metals joined the recovery. Platinum jumped 3.04% to $2,151.8, while palladium gained 2.75% to $1,693.46. Silver futures for May rose 2.11% to $85.24, with spot prices advancing 3.24% to $84.69.

The US Dollar Index held steady at 99.02, limiting gold’s upside but failing to halt the broader move into precious metals.

Market Outlook

Geopolitical tensions intensified after Iran’s Revolutionary Guard reportedly asserted control over the Strait of Hormuz, while Washington signaled readiness to deploy naval escorts if needed.

With nearly one-fifth of global oil shipments passing through the strait, any sustained disruption could significantly tighten global energy supplies.

For now, markets remain highly sensitive to headlines from the region. If tensions escalate further, oil could push higher while safe-haven demand for gold and other precious metals continues to strengthen in the weeks ahead.