Now Reading: Oil nears $90 as Hormuz standoff deepens supply fears
-
01
Oil nears $90 as Hormuz standoff deepens supply fears
Brent crude rose above $89 a barrel on Wednesday, up 13% from a week ago, as talks to reopen the Strait of Hormuz stalled. US President Donald Trump demanded compensation from Iran…
The Story in Brief
Brent crude rose above $89 a barrel on Wednesday, up 13% from a week ago, as talks to reopen the Strait of Hormuz stalled. US President Donald Trump demanded compensation from Iran for war victims, dashing hopes of an early deal. Iran insists the strait stays shut while the US naval blockade continues. The IEA now forecasts global oil demand will fall by 1.6 million barrels a day in 2026, deeper than earlier estimates, as supply disruptions push fuel prices higher.
The Indian Opinion
Market commentary frames this as a simple ‘deal vs war’ seesaw, but the underlying numbers tell a grimmer story. The IEA now expects a 1.8 million barrel-a-day deficit this quarter and global inventories at their lowest since April 2025. Inventory buffers are being depleted fast. The real test is whether the EIA confirms a 9.1 million barrel crude build later today, if so, near-term tightness may ease. If not, every week of closed strait raises the cost of fuel for ordinary Indians even more.
Sources (3): timesnownews.com, thehindubusinessline.com, hindustantimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
