WTI Breaks $100—and This Rally Has Legs

For months, crude oil prices have been constrained by reports of improving tanker traffic in the Strait of Hormuz. Even after the June ceasefire between Iran and the United States collapsed, tankers moving in and out of Hormuz have been moving at rates higher than in the spring.

This has now changed with the latest escalation in the chokepoint, sending Brent crude above $100 per barrel on Wednesday morning and WTI crude breaking $100 on Thursday morning in the midst of an early 4. 75% rally.