Oil Price Today, June 11, 2026: Oil Surges 1.8% to $94.8 as Iran Closes Strait of Hormuz, Raising Fears of Global Supply Shock

Mumbai, June 11: Global oil prices rallied on Thursday after Iran announced the closure of the Strait of Hormuz following fresh U.S. military strikes, stoking fears of a major disruption to energy supplies and intensifying concerns about inflation and economic growth. 

Brent crude futures rose 1.8% to around $94.8 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 2% to trade at $91.9 a barrel. 

Strategic Waterway in Focus 

The Strait of Hormuz is one of the world’s most important energy chokepoints, carrying roughly a fifth of global oil consumption and a significant portion of liquefied natural gas shipments. Any disruption to traffic through the narrow waterway has the potential to send shockwaves through global energy markets. 

Iran’s decision to close the route has heightened concerns that crude supplies from key Gulf producers could face delays or disruptions, forcing refiners and traders to seek alternative sources. The development has triggered a fresh geopolitical risk premium in oil prices, with market participants bracing for further volatility. 

Supply Concerns Add to Bullish Momentum 

Both benchmarks jumped in response to Iran shutting up the Strait of Hormuz once again. Source: oilprice.com 

Apart from geopolitical risks, oil markets have also drawn support from tightening supply conditions. Recent data pointing to a sharp decline in U.S. crude inventories signalled resilient demand, while production constraints in several oil-producing regions have further tightened the market balance.  

Analysts say that if tensions in the Middle East persist, crude prices could remain elevated as traders factor in the possibility of prolonged supply disruptions. The focus is now on whether diplomatic efforts can prevent the conflict from spreading further across the region. 

Inflation Risks Return to Centre Stage 

The rally in crude prices has revived concerns about inflation just as major central banks were beginning to see signs of easing price pressures. Higher energy costs typically filter through to transportation, manufacturing and consumer goods, raising the risk of broader inflationary pressures. 

For policymakers, a sustained increase in oil prices could complicate the interest-rate outlook by delaying expectations of monetary easing. Investors are increasingly worried that central banks may be forced to keep borrowing costs higher for longer if energy-driven inflation gathers pace. 

India Among the Most Vulnerable 

The surge in crude prices is particularly significant for India, which imports the bulk of its oil requirements. Higher oil prices can increase the country’s import bill, widen the trade deficit and put pressure on the rupee. 

Fuel-sensitive sectors such as aviation, paints, chemicals and oil marketing companies could face margin pressures if crude remains elevated. At the same time, upstream oil and gas producers may benefit from stronger realizations. 

With geopolitical tensions showing little sign of easing, developments in the Middle East are likely to remain the key driver of oil prices and broader market sentiment in the coming days. 

Source

• rates from oilprice.com