Crude Oil Hits $100 Mark Amid Ceasefire Uncertainty and Hormuz Risks

Crude oil prices touched the $100 per barrel mark following a significant escalation as a naval blockade of Iranian ports commenced on April 13. The blockade, covering all vessels in the Persian Gulf and the Gulf of Oman, was triggered by the total collapse of negotiations in Islamabad on April 12. This military action poses a direct threat to approximately 20% of global natural gas trade, intensifying fears over energy supply security. While spot prices reacted sharply, options traders continue to price in lower volatility for longer-dated contracts, suggesting a divergence between immediate geopolitical shocks and long-term expectations. Investors are now closely monitoring the impact of the blockade on global trade flows while awaiting upcoming CPI data to gauge the resulting inflationary pressure.