CIR Afternoon Update — April 7, 2026
Oil markets remained on a knife's edge Tuesday as the Strait of Hormuz crisis entered its second month with no resolution in sight, keeping crude prices at their highest levels in nearly two decades.
According to Rigzone, West Texas Intermediate settled at $112.41 per barrel Monday — up 0.8% on the session — after swinging in a $6.60 intraday range on conflicting signals from Washington and Tehran. Dated Brent surged above $140 per barrel at points during the session, a level not seen since 2008, according to Bloomberg data cited by Rigzone.
President Trump issued a stark ultimatum Monday, stating Iran faced "complete demolition" within hours if no deal was reached — a statement that briefly lifted prices before partially reversing when he emphasized that reopening the Strait of Hormuz was "a very big priority." Iran rejected the latest ceasefire proposal, countering with demands for permanent sanctions relief and reconstruction funding, per Iran's state-run Islamic Republic News Agency.
OPEC+ held an emergency meeting over the weekend, approving a quota increase as a signal of intent — though the gesture is largely symbolic while Persian Gulf flows remain throttled. Saudi Aramco raised its flagship Arab Light official selling price for May Asia deliveries to a record $19.50 premium over regional benchmarks, according to Bloomberg.
On the domestic front, Continental Resources' Harold Hamm said the company plans to add rigs across its oil plays to support U.S. allies, according to Hart Energy — a rare public signal of accelerated activity driven directly by geopolitical conditions. Commonwealth LNG also announced it has reached full commercialization and is nearing a final investment decision, per Hart Energy.
WTI's prompt spread — the spread between its two nearest futures contracts — traded near $15.50 per barrel at one point Monday, close to a record premium, reflecting expectations of near-term U.S. supply tightness as overseas buyers divert purchases to American crude.
Disclaimer: This update is for informational purposes only and does not constitute investment advice. CIR compiles information from publicly available sources. Crude Intelligence Report is not responsible for errors or omissions. Always conduct your own due diligence before making investment decisions.
