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Oil Market Settles on $100 Ceiling as Iran Conflict Reshapes Energy Supply

Crude oil traders are converging on a $100-per-barrel price range as the U.S.-Iran conflict creates supply shortages. The blockade of the Strait of Hormuz has eliminated nearly 1 billion barrels from the market, and the deficit widens daily as diplomatic efforts to restore shipments stall. Major energy producers acknowledge the shortage may persist for months without a negotiated resolution. The supply crunch ripples across developing economies. Brazil's central bank raised interest rate forecasts for 2027 as energy costs fuel inflation pressures. Nigerian producers are capitalizing on elevated crude prices by directing profits into accelerated extraction, aiming to double the country's output within four years. Market participants expect prices to remain anchored near the $100 level until supply channels reopen.