Oil to get costlier amid Hormuz stand-off

Supply constraints, fragile truce keep crude at $100 despite weaker demand

- BY JUSTIN VARGHESE

Oil prices are likely to remain elevated, and could rise further in the near term, as ongoing disruption in the Strait of Hormuz and uncertainty surrounding the conflict involving Iran continue to tighten global supply conditions.

The move not only places the international benchmark back into triple-digit territory after weeks of volatile trading below that level, but also reflects persistent concerns over whether oil flows from the Arabian Gulf can return to normal levels. Prices have climbed sharply from around $70 before the conflict, underlining how quickly supply risks have been priced into the market.

Supply disruption risk