Crude Prices Surge Over $96 as Iran War Disruption Fuels Market

Crude oil prices rose sharply in midday trading Monday, with geopolitical tensions in the Middle East continuing to drive the market. West Texas Intermediate (WTI) crude traded at $96.12 per barrel, a gain of $1.72 or 1.82%. The global benchmark, Brent crude, rose $2.18 to $101.31 per barrel, according to live price data.

The primary driver remains the ongoing conflict involving Iran, which has blocked the crucial Strait of Hormuz shipping passage. According to a report from OilPrice.com, UK Chief Secretary to the Prime Minister Darren Jones stated that surging energy and food prices caused by the war could last for "eight-plus months" after the conflict ends. The Strait of Hormuz, a vital route for global oil shipments, has been largely blocked since the end of February.

Jones attributed the price pressures directly to the conflict, stating on Sunday, "You’re going to see prices go up a bit as a consequence of what Donald Trump has done in the Middle East." He added that the economic impacts would have a "long tail," affecting energy, food, and flight ticket prices for an extended period.

For Bakken operators, the elevated global price environment is supportive, though regional differentials impact netbacks. The Bakken differential to WTI was reported at -$3.42 per barrel. This means Bakken crude is priced at a discount, with a midday implied price of approximately $92.70 per barrel. The sustained high prices for the WTI and Brent benchmarks, however, provide a strong revenue backdrop for production in North Dakota.

Natural gas prices also saw an uptick, rising $0.09 to $2.77 per MMBtu.

The UK government is facing pressure to address the economic fallout. Supermarket chains have called for cuts to energy policy costs to help manage food price inflation. The Food and Drink Federation expects UK food inflation to reach 9-10% this year as a consequence of the disruption, OilPrice.com reported.

While an open-ended ceasefire has paused most fighting, the blockage of the Strait of Hormuz continues to constrain global oil supply, keeping markets volatile. The UK warning of a prolonged price shock underscores the market's vulnerability to extended supply disruptions. For Bakken producers, the situation reinforces the importance of geopolitical risk as a key price determinant alongside domestic production and pipeline capacity.