Oil Prices Defy Hormuz Closure Logic The global oil price has dipped below $100 per barrel despite the ongoing three month closure of the Strait of Hormuz.
Market observers are puzzled by this development, given that the conventional wisdom would suggest higher prices due to supply disruptions.
Optimism over a potential US Iran agreement appears to be trumping concerns about supply chain issues. WTI Crude has dropped by over 5% in the past week, while Brent Crude has slipped by nearly 4%.