Brent Crude Hits $115 on Hormuz Supply Fears

Brent crude futures climbed to $115 a barrel, the highest price since June 2022, after eight consecutive sessions of gains. The rally is being driven by intensifying concerns over supply through the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's traded oil passes. A disruption or credible threat to flows through Hormuz is one of the fastest ways to move global oil prices, since alternative shipping routes add significant time and cost. At $115, crude is now well above levels that typically trigger demand destruction in major importing economies, including India, which is among the world's largest buyers of seaborne oil. Sustained prices at this level would push up fuel costs, widen trade deficits in oil-importing nations, and add fresh pressure on central banks already managing inflation. The key question now is whether physical supply is actually disrupted or whether this move is driven primarily by risk premiums building in the futures market.