Tom Kool reports that global oil prices are expected to exceed $100 per barrel as the Strait of Hormuz and Bab el-Mandeb face dual disruptions.

Tom Kool reports that global oil prices are poised to surpass $100 per barrel as the dual blockade of the Strait of Hormuz and the Bab el-Mandeb tightens global flows. While the Bab el-Mandeb can be bypassed via the Suez Canal, the dramatic decline in transits through the Hormuz remains a primary concern for oil markets. The administration announced new tariffs of 10-12.5% on imports from six trading partners to address weak enforcement of forced labor bans. Meanwhile, the energy sector faces significant pressure from the Iran war, which has caused crude inventories to tumble by 1.3 billion barrels over five months. The US Strategic Petroleum Reserve has also reached its lowest level since 1983. Market analysts suggest that if a full regional war breaks out, prices could reach a record high of $150 a barrel. Additionally, the administration is navigating a landscape where Russia's diesel exports are restricted due to Ukrainian drone attacks, further tightening the global supply.

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