Oil hits highest level since US-Iran ceasefire began, as conflict hurts Gulf crude production

Brent crude rose to as high as $107.48 a barrel on April 24, its highest level since the early-April U.S.-Iran ceasefire, as conflict-related supply disruptions continued to hit Gulf crude production.

The move came with the Strait of Hormuz still largely disrupted, keeping pressure on oil shipping and tightening the market. The latest price was reported in live market coverage and followed earlier signs that tensions in the region were already lifting crude prices.

The U.S. Energy Information Administration said Hormuz-related disruptions forced Iraq, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Bahrain to shut in 7.5 million barrels per day in March, with 9.1 million barrels per day expected to be shut in during April.

The International Energy Agency said the Middle East crisis has also removed close to 20% of global LNG supply from the market and pushed up price volatility in importing regions.

AP reported on April 19 that oil prices had already risen after renewed U.S.-Iran tensions stranded tankers in the Strait of Hormuz. The latest move shows the market still has not shaken off the impact of the conflict.

For now, traders are focused on whether the disruption eases or whether supply losses deepen further in the next trading sessions.