Oil Prices Expected to Stay Above $100 for the Rest of 2026

Global oil prices are expected to remain above $100 per barrel for most of this year, according to investment bank JPMorgan Chase. Analysts warned that even if the Strait of Hormuz reopens next month, energy supplies may take a long time to stabilize due to shipping and logistical disruptions.
The full report is available from BBC News

Oil Prices Surge After Trump Rejects Iran’s Proposal

Oil markets reacted sharply after Donald Trump described Iran’s response to US peace proposals as “totally unacceptable.” Iran reportedly sent its reply through Pakistan, which has been acting as a mediator between both countries. Tehran demanded an immediate end to the conflict and guarantees against further US-Israeli military strikes. Following Trump’s comments, Brent crude prices jumped by more than 4%, briefly reaching $105.94 per barrel before settling near $105.

Strait of Hormuz Disruptions Continue

The Strait of Hormuz, one of the world’s most important oil transit routes, has remained effectively closed since the conflict began on 28 February. Normally, nearly 20% of global oil and gas shipments pass through the narrow waterway. Iran had earlier threatened to target vessels crossing the route in retaliation for US-Israeli attacks, creating major disruptions in global energy markets. JP Morgan stated that even after the strait reopens, problems such as tanker shortages, refinery delays, and transportation bottlenecks would continue affecting supply chains. The bank now expects oil prices to remain in the “low $100s” for much of 2026.

Netanyahu Says War Is Not Finished

Benjamin Netanyahu said the conflict would not end until Iran’s enriched uranium stockpiles were eliminated. Although a ceasefire introduced in early April has mostly held, occasional clashes have continued. Trump later extended the truce indefinitely on 21 April to allow more time for diplomatic negotiations.

Energy Giants Benefit From Rising Prices

Major global energy companies have reported massive profit increases because of rising oil and gas prices. Saudi energy company Saudi Aramco announced that its first-quarter earnings rose by more than 25% compared with the same period last year. Aramco CEO Amin Nasser said the company’s cross-country pipeline system helped reduce the impact of shipping disruptions caused by the Iran conflict. At the same time, BP reported that its profits more than doubled during the first quarter, while Shell also posted strong earnings growth.

Market Recovery Could Take Until 2027

Amin Nasser warned investors that global energy markets may need years to fully recover. According to him, even if the Strait of Hormuz reopened immediately, markets would still require months to rebalance. He added that any further delay could push full normalization into 2027 and claimed that the market had already suffered an unprecedented supply loss of nearly one billion barrels of oil. Meanwhile, data from the Organization of the Petroleum Exporting Countries (OPEC) showed that crude production in April dropped by 830,000 barrels per day compared with the previous month, highlighting continued pressure on global energy supplies.