WTI prices surge past Brent as Iran disruptions continue

Global oil markets saw an unusual shift on Thursday as West Texas Intermediate (WTI) climbed above Brent Crude prices amid ongoing disruptions linked to the conflict involving Iran and continued instability around the Strait of Hormuz. Daily Trust reports that the Brent Crude and West Texas Intermediate (WTI) are the two primary global oil benchmarks, […]

Global oil markets saw an unusual shift on Thursday as West Texas Intermediate (WTI) climbed above Brent Crude prices amid ongoing disruptions linked to the conflict involving Iran and continued instability around the Strait of Hormuz.

Daily Trust reports that the Brent Crude and West Texas Intermediate (WTI) are the two primary global oil benchmarks, with Brent serving as the international standard and WTI as the US benchmark. WTI is generally lighter and sweeter (lower sulfur) than Brent, making it ideal for gasoline production, while Brent is often better for diesel.

The pricing inversion, which is rare in normal market conditions, reflects mounting supply concerns as key shipping routes remain constrained. 

WTI crude surged more than 11 per cent on Thursday, trading around $111.7 per barrel, while Brent rose by about 7 per cent to roughly $108.5. The premium for U.S. crude over Brent underscores traders’ growing preference for barrels that can be delivered without passing through disrupted maritime chokepoints. 

The upheaval in pricing comes as tensions in the Middle East persist, particularly following recent military actions and threats that have effectively shut down tanker traffic through the Strait of Hormuz—a waterway that normally handles about 20 per cent of global oil flows. The closure has heightened fears of prolonged supply shortages, driving up prices across benchmarks. 

Analysts note that part of the apparent price inversion between WTI and Brent stems from technical factors related to futures contract delivery dates, but the deeper driver remains the acute “backwardation” in near-term crude markets, where immediate supply is priced at a premium due to tight availability. 

The ongoing disruption has prompted major financial institutions to warn of further price upside if the situation persists. J.P. Morgan has cautioned that oil could reach $120–$130 per barrel in the near term and potentially exceed $150 if the Strait remains effectively closed into mid-May. 

The unusual market dynamics reflect a broader shift in how crude is being priced amid geopolitical risk. Brent, which is tied to seaborne oil shipments, is more directly affected by restrictions on tanker movements. In contrast, WTI—anchored in U.S. domestic delivery infrastructure—has gained relative appeal as traders seek barrels that can be more readily accessed and shipped without transiting the troubled route. 

The surge in oil prices has also weighed on broader financial markets, with equities reacting to heightened uncertainty over energy supply and geopolitical escalation.