Oil prices climbed again today as severe damage to energy infrastructure and the ongoing closure of the Strait of Hormuz continue to choke global supply lines. With roughly 20% of the world’s oil passing through that single waterway, the three-week-old conflict is no longer being viewed as a short-term hiccup, but rather a long-term threat to the global economy.
Brent crude, the international benchmark, rose 1.4% to reach $110.2 a barrel, while the U.S. standard, West Texas Intermediate (WTI), ticked up 0.3% to $95.9.
These price hikes reflect a growing panic over structural damage to facilities in countries like Qatar and Iran—damage that experts say could take years, not weeks, to fully repair.
Unlike temporary shipping delays, the physical destruction of oil and gas terminals creates a supply vacuum that persists even after the fighting stops.
In a note released Thursday, analysts at Goldman Sachs warned that these “persistent, large-scale supply shocks” could keep prices elevated through 2027. The firm pointed to historical precedents where production capacity took significant time to recover from similar crises.
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“The persistence of several prior large supply shocks underscores the risk that oil prices may stay above $100 for longer in risk scenarios with lengthier disruptions and large persistent supply losses,” the analysts wrote.
The economic ripple effects are already being felt by households. Americans are currently grappling with the highest gas prices in nearly 2.5 years, raising concerns about stagflation—a damaging combination of high inflation and slowing economic output. In response to the growing pressure,
President Trump sought to reassure the public. “It’s going to be over with pretty soon,” the President said, though the administration has not yet provided a specific roadmap for how it will bypass the blockage in the Strait.
Market analysts remain skeptical of a quick fix. While some hope that OPEC might eventually deploy spare capacity to stabilize the market, that can only happen once shipping flows normalize. For now, the combination of infrastructure hits and strategic stockpiling by nervous nations is keeping upward pressure on every barrel.
With the conflict showing no signs of abating, the prospect of “higher-for-longer” energy costs is becoming the new baseline for the global market.
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