Oil price is still going high

Oil Prices Hit a Six-Month High as Strait of Hormuz Tensions Continue

Market snapshot as of 25 October 2026. Prices change daily, so check a live quote before relying on any figure in this article.

Crude oil is climbing again, and the Strait of Hormuz is at the centre of the story. Brent crude, the global benchmark, settled at about $116.72 a barrel on Friday, 23 October, according to Reuters-based market reports. That was a jump of roughly 3% in a single session and the highest settlement since late April. US crude (WTI) closed near $103. The rally comes while attacks on ships around the Strait continue, diplomacy appears stalled, and traders worry that the conflict between the US and Iran could flare up again. Here is what is driving prices and what Me and Market readers should watch.

Where the Hormuz Situation Stands

The Strait of Hormuz is a narrow waterway through which a large share of the world's oil normally travels. Reports say Iran closed it in July, and since then shipping through the area has been disrupted. Traffic has recovered somewhat at times, but it has also dropped sharply after waves of attacks. In early October, record tanker attacks pushed crossings to a two-month low. One tally counts at least 28 attacks on vessels in and around the Strait during October, and other counts differ, but sources agree the attacks are continuing and that damaged tankers have been reported.

In short, the situation is unresolved. Some oil is moving, but the route remains dangerous.

Why Oil Prices Are Rising

1. Continued attacks on tankers

Each new attack raises the cost and risk of moving oil. Shipowners and insurers charge more, some voyages are delayed, and traders add a risk premium to futures prices. A senior energy analyst quoted in recent coverage noted that markets price in stability, not only the volume of oil available. Even when supply looks adequate on paper, fear about the route can keep prices high.

2. Pressure on Saudi export routes

Since the Strait was closed, Saudi Arabia has relied heavily on its East-West pipeline to the Red Sea port of Yanbu, which Aramco's chief executive has said carries about 7 million barrels a day. Over the past few days, the Houthis have claimed attacks on Saudi targets, including Yanbu and the pipeline, while Riyadh says it has intercepted incoming strikes. Any damage to this backup route would tighten supply further, so traders are watching it closely.

3. Fear of renewed fighting

Iranian officials have warned that US warships will not be allowed to get close, and reports say Washington is weighing new action. Brent first crossed $100 in March, during the opening weeks of the war, and peaked at about $126. Markets know that a return to heavy strikes could push prices back toward those levels.

4. Emergency stock releases are running down

In March, International Energy Agency members agreed to release 400 million barrels from emergency reserves. By early October, roughly 325 million barrels had been released, with about 100 million still to come. The agency has said it will not add to the total. As that cushion shrinks, the market has less protection against new shocks.

5. Tight fuel markets

Refineries have been running close to capacity, which can push prices of products like diesel up faster than crude. Higher fuel costs are already showing up in inflation data in some countries. Canada, for instance, reported inflation at 3.1% with fuel oil prices up sharply.

Key Price Levels Traders Are Watching

Traders following Brent are paying attention to a few simple levels. The first is the recent high near $117, which the market has just tested. The second is the peak near $126 from earlier in the conflict, which many see as a major resistance area. The third is the zone around $108 to $112, which some analysts view as a possible support area if prices pull back. These are widely discussed levels and not predictions. Prices can move through any of them quickly when headlines change.

What Forecasters Expect

Forecasts are far apart, which shows how uncertain things are. Goldman Sachs published a December Brent forecast of $90 earlier this month, when prices were lower, so the market is now well above that view. The US Energy Information Administration expects a much lower average price in 2027 than today's level. At the same time, Brent futures for April 2027 are trading above $100, which suggests many traders do not expect a quick return to calm.

What It Could Mean for Indian Markets

India imports most of the crude oil it consumes, so sustained high prices can matter. In general, higher oil tends to widen the import bill, add pressure on the rupee, raise transport and input costs, and keep inflation concerns alive. Sectors such as oil marketing companies, airlines, paints and tyres are often watched closely when crude rises, while some energy producers may benefit. The effect on Nifty and Bank Nifty depends on many other factors as well, so oil is only one piece of the picture.

What to Watch Next

• Tanker attack reports and any change in shipping traffic through Hormuz.
• Status of Saudi export facilities at Yanbu and along the East-West pipeline.
• US and Iran headlines, including any sign of renewed strikes or restarted talks.
• The US Federal Reserve meeting on 28 October, since oil prices can influence inflation and interest-rate expectations.
• The OPEC+ meeting on 1 November and weekly US inventory data.

Frequently Asked Questions

Is the Strait of Hormuz open?

Some ships are passing, but attacks continue and traffic has been unstable. The situation is not back to normal.

Why do different websites show different Brent prices?

Prices depend on the contract month and the time of the quote. Some sites show the front-month contract and others a later one, so small gaps are normal.

Will oil prices keep rising?

Nobody can say for sure. Prices could drop quickly if tensions ease or climb further if attacks widen. Treat any single forecast with caution.

Does a high oil price always hurt stocks?

Not always. The impact depends on the sector, the speed of the move and other economic factors.

Disclaimer: This article is for educational purposes only and is not investment advice or a recommendation to buy or sell any security or commodity. Commodity and stock markets involve high risk. Please do your own research and consult a qualified financial advisor before making decisions.

Sources and Further Reading

• FinanceFeeds market reports on Brent crude, 23 to 25 October 2026
• OilPrice.com, "Brent Tops $110 as Tanker Attacks Threaten Persian Gulf Supply"
• CNN Business, report on tanker attacks and IEA stock releases, 8 October 2026
• Al Jazeera, report on Iran and Strait of Hormuz tensions, 24 October 2026
• International Business Times Australia, Strait of Hormuz status update
• BigGo Finance, report on Brent above $117