The closure of the Strait of Hormuz triggers a global energy crisis, and Brent crude’s one-month gain reaches the highest level since 1988

Gate News message: Brent crude oil futures rose more than 60% in March, posting the biggest one-month gain since 1988. On Tuesday, the May contract’s settlement price rose to $118.35 per barrel; U.S. West Texas Intermediate (WTI) for the same month climbed by about 51%, its best performance since May 2020.

Turmoil in the energy market was driven by Iran’s closure of the Strait of Hormuz after U.S. and Israeli airstrike actions on February 28, which severely disrupted global oil supply. The International Energy Agency (IEA) said the disruption is the worst supply shock in the history of the global oil market. Gasoline prices in the U.S. and the U.K. were directly affected: in the U.S., the average price per gallon has already risen to $4, while in the U.K. gasoline has climbed to 152.8 pence per liter. JPMorgan Global Chief Economist Bruce Kassman warned that if the strait closure is extended to one month, oil prices could rise to $150 per barrel, and industrial energy supply would be constrained.

Bloomberg reported that Wall Street analysts and U.S. officials have started discussing the potential risk that crude oil prices could reach $200 per barrel. U.S. President Trump said U.S. forces may end military actions against Iran within two to three weeks, even if the Strait of Hormuz is still closed. The United Arab Emirates has said it is willing to help the U.S. force the waterway reopened, and Bahrain is also pushing for the United Nations Security Council to authorize the establishment of an independent maritime task force.

The market broadly focuses on how and when the strait could reopen. Diplomatic negotiations, military withdrawals, or forced actions will directly affect the stability of crude oil supply and the direction of oil prices. Analysts noted that in the short term, oil prices still have significant room for volatility, and crypto assets such as Bitcoin and Ethereum may be indirectly affected as investors seek alternative value. The global energy market is in a high-risk range, and investors need to closely monitor the latest developments in geopolitics and the Strait of Hormuz.