Global Economy & Energy — 2026-03-27

Oil Prices Surge Past $110/bbl Brent as Hormuz Closure Enters Fourth Week and Iran Denies Talks

Brent crude surged above $112/bbl before settling around $108-110 as the Strait of Hormuz closure entered its fourth week. The strait has been effectively closed to commercial traffic since March 2, disrupting approximately 17.8 million barrels per day of oil flows. Goldman Sachs estimates an $18/bbl geopolitical risk premium in current prices. Iran's denial of any negotiations with the US on March 25 reignited market fears of prolonged supply disruption. WTI crude climbed to $94-99/bbl range.

Analysis
The $18/bbl risk premium Goldman identifies implies markets are pricing in a multi-month disruption. The key threshold is $130-150/bbl, where demand destruction begins offsetting supply concerns. The simultaneous Hormuz closure (17.8 million bpd) and Russian Baltic disruption (2+ million bpd) is unprecedented in modern energy markets.

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Current price of oil as of March 27, 2026 - Fortune