Crude Surges Past $105 as Gulf Supply Crisis Deepens

Brent crude is hovering just above $104, easing slightly from the prior session's spike, but the underlying supply picture remains severely strained. The Strait of Hormuz, once responsible for moving roughly a fifth of global oil and LNG, has been effectively closed since March, cutting off a critical artery for Gulf exports.

Saudi Arabia's output has fallen by around 1.9 million barrels per day in August alone, and the EIA now projects Middle East production won't return to pre-conflict levels until Q2 2027. With the EU sourcing 57% of its crude from the region, the supply squeeze is reshaping global energy flows and keeping upward pressure on prices for the foreseeable future.