Iran Conflict Keeps Oil Prices Elevated, Volatility Likely To Persist

Iran Conflict Keeps Oil Prices Elevated, Volatility Likely To Persist

TEHRAN, Apr 20 (VoM News) — As the ongoing tensions between the Iran and the United States are expected to keep global oil prices elevated in the coming months, with markets showing little sign of stabilising despite recent fluctuations.

Since the conflict escalated on February 28, benchmark Brent crude prices surged from around $70 per barrel to a peak of over $119 in March. Prices have since slipped below $100, but traders say the broader outlook remains uncertain.

A major factor behind the volatility is the disruption in the Strait of Hormuz, a critical route that carries nearly one-fifth of the world’s oil supply. Ongoing restrictions and security concerns have slowed tanker movement, tightening supply and keeping prices under pressure.

Efforts to ease tensions have so far failed to produce a breakthrough. Analysts say the lack of progress in negotiations is adding to market anxiety, with no clear timeline for normalcy.

U.S. Energy Secretary Chris Wright said petrol prices in the United States are likely to stay above $3 per gallon longer than expected. “Prices may have peaked, but they’re not coming down quickly,” he noted, adding that elevated rates could persist for months.

Data from the American Automobile Association shows the national average fuel price has already climbed to about $4.05 per gallon, up from $2.98 before the conflict began.

Industry experts caution that even if shipping routes fully reopen, prices are unlikely to fall sharply. Damage to infrastructure and reduced tanker availability could delay any meaningful correction.

Separately, Sultan Al Jaber pointed to wider economic risks, noting that weeks of disruption have affected hundreds of millions of barrels of oil and increased strain on liquefied natural gas and aviation fuel supplies.

With the ceasefire still fragile and tensions unresolved, analysts say volatility in oil markets is likely to continue, leaving consumers worldwide to absorb the impact.