Brent Crude Tops $110 on US-Iran Strait of Hormuz Fears

Brent crude climbed to $111.59 a barrel on May 1, driven by mounting tensions between the US and Iran and continued disruption to oil supply through the Strait of Hormuz. The Strait of Hormuz is a narrow waterway through which a large share of global oil flows, making any blockage there a direct threat to supply worldwide. Prices have now topped $120 a barrel for the first time in four years, a level that analysts say is stoking broader inflation fears. When oil costs this much, it feeds into higher fuel, transport, and manufacturing costs across most economies. The immediate concern is whether the supply disruption holds or deepens. If the Strait remains blocked and US-Iran tensions escalate further, prices could stay elevated for an extended period, adding pressure to central banks already fighting inflation. Traders and policymakers will be watching any diplomatic movement closely.