Hormuz Volatility Hits Markets, Court Rules for Pipeline Firm

Oil prices remained volatile Friday as doubts resurfaced about a deal to reopen the Strait of Hormuz, a critical chokepoint for global energy shipments. Brent crude settled at $100.06 a barrel on Thursday, while West Texas Intermediate (WTI) settled at $94.81, according to Rigzone. Trading has been whipsawing all week as investors parse details of potential U.S.-Iran negotiations to end a war that has blocked the strait since late February.

The strait's closure represents the biggest disruption to oil supplies in history, with Brent prices up roughly 40% since the conflict began, Rigzone reported. Prior to the war, about a fifth of the world's oil and liquefied natural gas (LNG) flowed through Hormuz. The ongoing double blockade—with Iran obstructing traffic and the U.S. Navy restricting vessels at Iranian ports—has kept the waterway virtually empty.

In a related development, Pakistan, which is mediating talks, opted not to buy urgent spot LNG cargoes for May delivery, betting the conflict is easing and cheaper contracted supplies from Qatar will arrive soon, Rigzone reported Friday. This is a risky gamble for the country, which has received only a single LNG shipment since early March compared to an average of nine per month last year.

Analysts expect the market volatility to continue. "We expect a dual-track strategy of military escalation and simultaneous diplomacy to continue in the near-term, and so crude prices will continue oscillating on headlines," said Emily Ashford, head of energy research at Standard Chartered, in the Rigzone report.

North Dakota Court Rules for Energy Transfer In a separate matter with implications for midstream operators, the North Dakota Supreme Court ruled Thursday in favor of Energy Transfer. In a 4-1 decision, the court ordered a district judge to issue a narrowly tailored order blocking parts of a related lawsuit filed by Greenpeace against the company in the Netherlands, according to a summary from Bing News.

The ruling provides legal support for the pipeline company, though the specific parts of the lawsuit to be blocked were not detailed in the summary. The decision underscores the ongoing legal and regulatory environment facing energy infrastructure projects connected to the Bakken.

Implications for the Bakken The sustained volatility in global crude benchmarks, driven by geopolitical risk in the Middle East, directly impacts the pricing environment for Bakken producers. The premium of Brent over WTI can influence export economics. Meanwhile, the court decision in favor of a major pipeline operator may be viewed positively by North Dakota's oil industry, which relies on stable and legally secure infrastructure to transport production to market.