Crude prices jump sharply: WTI at $114, Brent at $111 on renewed geopolitical risk, supply concerns

US crude (WTI) traded above $114 per barrel and surpassed Brent crude, an unusual inversion that underscores deepening market stress.

Brent — the global benchmark — was above $111, while UAE Murban crude climbed above $114.8, marking strong demand for barrels that can be moved outside chokepoints like the Strait of Hormuz.

Urals crude, the Russian benchmark, stayed elevated at $121.17, up $15.44, or 14.60%, as of 7.38am on Monday (April 6, 2026) Tokyo | 10.38pm GMT (April 5, 2026).

Natural gas prices also rose modestly, reflecting broader energy market tightness.

These moves come amid heightened geopolitical uncertainty tied to ongoing tensions in the Middle East, particularly involving Iran and wider regional conflict dynamics.

A price inversion between WTI and Brent is unusual — and it suggests the market is worried about how oil can be delivered, not just how much oil exists.

WTI vs Brent

Normally, Brent trades higher than WTI.

West Texas Intermediate (WTI) is the US light, "sweet" crude priced at Cushing, Oklahoma, and is the benchmark for North America.

Brent Crude (Brent) is the North Sea "blend" priced for seaborne delivery; benchmark for most of the world.

Brent is waterborne and easily shipped worldwide, and WTI is landlocked in the US midcontinent and needs pipelines/export terminals to reach global buyers.

Why prices are so high

• Geopolitical tensions and supply risk: Fears of disruptions through the Strait of Hormuz — a key artery for global oil flows — have driven traders to price in a significant “war-risk premium,” lifting oil prices sharply.

• Risk premium on deliverable barrels: WTI, typically cheaper than Brent, has risen above Brent because US barrels are seen as more "deliverable" amid possible sea-route bottlenecks.

• Recent political rhetoric: Statements from the Trump administration about continuing military pressure on Iran have reinforced concerns about a protracted conflict and disrupted supply.

Impact

Oil markets are volatile — with prices at multi-year highs — and benchmarks are trading in unusual relationships as traders reassess supplies.

Inflationary pressures continue amid elevated oil prices, which typically feed through to gasoline, diesel and broader energy costs.

Energy-importing economies face inflationary pressure as analysts warn this could weigh on global economic growth if sustained.

Recent rallies in equities were partly reversed as oil risk premiums rose; occasional optimism about a de-escalation has triggered brief market rallies but not eased underlying energy risk.