Oil Prices Break Above $100 Despite U.S.-Iran Ceasefire Agreement

Crude oil prices have broken above the $100 per barrel threshold as the Strait of Hormuz remains closed, maintaining a high geopolitical risk premium despite the U.S.-Iran ceasefire. A new report from Bank of America highlights that 11 million barrels per day of production remains shut in, significantly tightening global supply dynamics. Despite this disruption, the S&P 500 has shown resilience, while Saudi Arabian production cuts provide further upward momentum for crude. Bank of America remains bullish on four dividend-paying energy stocks, signaling institutional confidence despite the recent price volatility. Consequently, energy-related instruments like the XLE and USO ETFs remain volatile as the market monitors physical supply constraints. Investors are now focused on how the massive scale of sidelined production will influence broader economic stability and global energy security.