<strong class="font-semibold text-landing-text-primary">Brent crude surged above $111 per barrel on April 29, 2026, extending an eight-session winning streak driven by the Strait of Hormuz blockade, U.S.-Iran war uncertainty, and the UAE's shock OPEC exit.</strong>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">The 8-Day Rally Explained</h2>
<strong class="font-semibold text-landing-text-primary">Brent crude futures</strong> for June delivery rose 52 cents, or 0.47%, to $111.78 a barrel in early Asian trading on April 29, 2026, notching an eighth consecutive day of gains. U.S. <strong class="font-semibold text-landing-text-primary">West Texas Intermediate (WTI)</strong> for June climbed 57 cents, or 0.57%, to $100.50 per barrel, just one day after surging 3.7% in the prior session. The more actively traded July Brent contract settled at $104.84 a barrel. The <strong class="font-semibold text-landing-text-primary">International Energy Agency</strong> described the ongoing Strait of Hormuz disruption as the <strong class="font-semibold text-landing-text-primary">biggest supply shock in modern energy market history</strong>.
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">Strait of Hormuz: The World's Most Vital Oil Artery Remains Choked</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">The central driver behind crude's relentless climb is the near-total closure of the <strong class="font-semibold text-landing-text-primary">Strait of Hormuz</strong>, the critical 21-mile-wide waterway connecting the Persian Gulf to global shipping lanes. Fighting that erupted between the U.S. and Iran in late February 2026 has rendered the strait <strong class="font-semibold text-landing-text-primary">largely impassable</strong>, strangling flows of crude oil, natural gas, and refined petroleum products. The strait handles approximately <strong class="font-semibold text-landing-text-primary">20 million barrels per day</strong> — roughly 20% of global oil trade — making its blockade an unprecedented supply shock with no modern parallel.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">Trump Orders Extended Iranian Port Blockade</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">A Wall Street Journal report published late Tuesday, citing senior U.S. officials, revealed that President <strong class="font-semibold text-landing-text-primary">Donald Trump</strong> has directed aides to prepare plans for an extended U.S. naval <strong class="font-semibold text-landing-text-primary">blockade of Iranian ports</strong>. The directive signals Washington's intent to sustain maximum economic pressure on Tehran by restricting all shipping in and out of Iranian terminals. Trump confirmed on Truth Social that Iran has formally requested the U.S. lift the naval blockade of the Strait of Hormuz while both nations attempt to negotiate an end to active hostilities. CNN, citing people close to the negotiations, reported that mediators expect Tehran to submit a <strong class="font-semibold text-landing-text-primary">revised peace proposal</strong> within days. Despite a ceasefire in place since early April, the two sides remain deeply divided over the terms of any lasting agreement.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">UAE's Shock OPEC Departure Rattles Markets</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">Oil markets received a second major structural shock when the <strong class="font-semibold text-landing-text-primary">United Arab Emirates</strong> announced its formal exit from OPEC and the wider OPEC+ alliance, effective <strong class="font-semibold text-landing-text-primary">May 1, 2026</strong> — reducing OPEC's membership to 11 nations. The UAE, which produces approximately <strong class="font-semibold text-landing-text-primary">3.5 million barrels per day</strong> and holds the second-largest spare capacity behind Saudi Arabia, cited national interest and a desire for strategic flexibility as its reason for departing. Leaving the cartel frees Abu Dhabi to produce beyond OPEC's production caps, but the timing — during one of the most severe <strong class="font-semibold text-landing-text-primary">supply disruption events</strong> in decades — removes a critical stabilizing force from global energy markets. CNBC noted the departure "undermines the cartel's ability to steer oil prices," while Reuters called it "a big blow to OPEC's control over global supply."</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">Analyst Forecasts Signal Further Upside Risk</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">Wall Street's leading commodity desks sharply revised their <strong class="font-semibold text-landing-text-primary">crude oil price forecasts</strong> in response to the compounding supply shocks. <strong class="font-semibold text-landing-text-primary">Goldman Sachs</strong> raised its fourth-quarter 2026 Brent forecast to <strong class="font-semibold text-landing-text-primary">$90 per barrel</strong> and WTI to <strong class="font-semibold text-landing-text-primary">$83 per barrel</strong>, citing reduced Middle East output — though those projections have already been surpassed by live market prices. Goldman analysts warned that economic risks "are larger than the crude base case alone suggests," pointing to unusually high refined product prices and growing risk of <strong class="font-semibold text-landing-text-primary">product shortages</strong>.</p>
<strong class="font-semibold text-landing-text-primary">Macquarie</strong> estimated near-term crude support in the $85–$90 range with a gradual move toward $110 as supply conditions normalize, while warning that prolonged Hormuz disruptions could push <strong class="font-semibold text-landing-text-primary">Brent as high as $150 per barrel</strong>. <strong class="font-semibold text-landing-text-primary">Nuvama Institutional Equities</strong> echoed that ceiling, projecting a $110–$150 range in an extended closure scenario. A Haitong Futures note flagged that the current ceasefire period "increasingly appears to be preparation for further conflict," warning that if U.S.-Iran talks fail to advance meaningfully by end of April, oil prices could surge to fresh 2026 highs.
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">OPEC Cohesion at a Breaking Point</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">The UAE's departure comes as OPEC's internal cohesion faces its most serious stress test in years. Abu Dhabi's exit strips the cartel of a member that has consistently maintained <strong class="font-semibold text-landing-text-primary">meaningful spare production capacity</strong> — the very resource needed to calm markets during supply emergencies like the current Hormuz crisis. The Atlantic Council observed that leaving OPEC "frees the UAE to exceed production caps," potentially adding supply to global markets over the medium term. However, in the immediate term, the political and structural uncertainty surrounding the exit is amplifying <strong class="font-semibold text-landing-text-primary">bullish momentum</strong> in futures markets.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">Global Energy Security Alarm Bells</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">The IEA's designation of the Hormuz closure as a historic supply shock has triggered a broader global energy security debate. U.S. Energy Secretary <strong class="font-semibold text-landing-text-primary">Chris Wright</strong> stated publicly that Washington is "absolutely not" considering a ban on energy exports despite rising domestic fuel prices — a key point of reassurance for Asian importers. Still, fears of a <strong class="font-semibold text-landing-text-primary">fresh inflation crisis</strong> fueled by energy price spikes are reverberating across bond and equity markets globally, with central banks closely monitoring crude's trajectory into May 2026.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6">Outlook</h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">With the Strait of Hormuz still effectively closed, U.S.-Iran peace talks at an early and fragile stage, and the UAE's OPEC departure removing a key supply buffer, the conditions underpinning the oil price rally remain firmly intact. <strong class="font-semibold text-landing-text-primary">Brent crude</strong> has now erased all losses recorded earlier in 2026 and trades near its highest levels since the height of the 2025 energy cycle. Markets will watch the next round of Iran-U.S. negotiations and any movement in Hormuz shipping access as the primary catalysts capable of either accelerating the rally toward the $130–$150 range cited by analysts or triggering a sharp reversal.</p>
<strong class="font-semibold text-landing-text-primary">Mentioned tickers:</strong> BNO, USO, XLE, XOM, CVX, BP, SHEL

# Crude Oil Crosses $111 on April 29, 2026: 5 Reasons Behind the 8-Day Rally

**Brent crude surged above $111 per barrel on April 29, 2026, extending an eight-session winning streak driven by the Strait of Hormuz blockade, U.S.-Iran war uncertainty, and the UAE's shock OPEC exit.**


## The 8-Day Rally Explained

**Brent crude futures** for June delivery rose 52 cents, or 0.47%, to $111.78 a barrel in early Asian trading on April 29, 2026, notching an eighth consecutive day of gains. U.S. **West Texas Intermediate (WTI)** for June climbed 57 cents, or 0.57%, to $100.50 per barrel, just one day after surging 3.7% in the prior session. The more actively traded July Brent contract settled at $104.84 a barrel. The **International Energy Agency** described the ongoing Strait of Hormuz disruption as the **biggest supply shock in modern energy market history**.

## Strait of Hormuz: The World's Most Vital Oil Artery Remains Choked

The central driver behind crude's relentless climb is the near-total closure of the **Strait of Hormuz**, the critical 21-mile-wide waterway connecting the Persian Gulf to global shipping lanes. Fighting that erupted between the U.S. and Iran in late February 2026 has rendered the strait **largely impassable**, strangling flows of crude oil, natural gas, and refined petroleum products. The strait handles approximately **20 million barrels per day** — roughly 20% of global oil trade — making its blockade an unprecedented supply shock with no modern parallel.

## Trump Orders Extended Iranian Port Blockade

A Wall Street Journal report published late Tuesday, citing senior U.S. officials, revealed that President **Donald Trump** has directed aides to prepare plans for an extended U.S. naval **blockade of Iranian ports**. The directive signals Washington's intent to sustain maximum economic pressure on Tehran by restricting all shipping in and out of Iranian terminals. Trump confirmed on Truth Social that Iran has formally requested the U.S. lift the naval blockade of the Strait of Hormuz while both nations attempt to negotiate an end to active hostilities. CNN, citing people close to the negotiations, reported that mediators expect Tehran to submit a **revised peace proposal** within days. Despite a ceasefire in place since early April, the two sides remain deeply divided over the terms of any lasting agreement.

## UAE's Shock OPEC Departure Rattles Markets

Oil markets received a second major structural shock when the **United Arab Emirates** announced its formal exit from OPEC and the wider OPEC+ alliance, effective **May 1, 2026** — reducing OPEC's membership to 11 nations. The UAE, which produces approximately **3.5 million barrels per day** and holds the second-largest spare capacity behind Saudi Arabia, cited national interest and a desire for strategic flexibility as its reason for departing. Leaving the cartel frees Abu Dhabi to produce beyond OPEC's production caps, but the timing — during one of the most severe **supply disruption events** in decades — removes a critical stabilizing force from global energy markets. CNBC noted the departure "undermines the cartel's ability to steer oil prices," while Reuters called it "a big blow to OPEC's control over global supply."

## Analyst Forecasts Signal Further Upside Risk

Wall Street's leading commodity desks sharply revised their **crude oil price forecasts** in response to the compounding supply shocks. **Goldman Sachs** raised its fourth-quarter 2026 Brent forecast to **$90 per barrel** and WTI to **$83 per barrel**, citing reduced Middle East output — though those projections have already been surpassed by live market prices. Goldman analysts warned that economic risks "are larger than the crude base case alone suggests," pointing to unusually high refined product prices and growing risk of **product shortages**.

**Macquarie** estimated near-term crude support in the $85–$90 range with a gradual move toward $110 as supply conditions normalize, while warning that prolonged Hormuz disruptions could push **Brent as high as $150 per barrel**. **Nuvama Institutional Equities** echoed that ceiling, projecting a $110–$150 range in an extended closure scenario. A Haitong Futures note flagged that the current ceasefire period "increasingly appears to be preparation for further conflict," warning that if U.S.-Iran talks fail to advance meaningfully by end of April, oil prices could surge to fresh 2026 highs.

## OPEC Cohesion at a Breaking Point

The UAE's departure comes as OPEC's internal cohesion faces its most serious stress test in years. Abu Dhabi's exit strips the cartel of a member that has consistently maintained **meaningful spare production capacity** — the very resource needed to calm markets during supply emergencies like the current Hormuz crisis. The Atlantic Council observed that leaving OPEC "frees the UAE to exceed production caps," potentially adding supply to global markets over the medium term. However, in the immediate term, the political and structural uncertainty surrounding the exit is amplifying **bullish momentum** in futures markets.

## Global Energy Security Alarm Bells

The IEA's designation of the Hormuz closure as a historic supply shock has triggered a broader global energy security debate. U.S. Energy Secretary **Chris Wright** stated publicly that Washington is "absolutely not" considering a ban on energy exports despite rising domestic fuel prices — a key point of reassurance for Asian importers. Still, fears of a **fresh inflation crisis** fueled by energy price spikes are reverberating across bond and equity markets globally, with central banks closely monitoring crude's trajectory into May 2026.

## Outlook

With the Strait of Hormuz still effectively closed, U.S.-Iran peace talks at an early and fragile stage, and the UAE's OPEC departure removing a key supply buffer, the conditions underpinning the oil price rally remain firmly intact. **Brent crude** has now erased all losses recorded earlier in 2026 and trades near its highest levels since the height of the 2025 energy cycle. Markets will watch the next round of Iran-U.S. negotiations and any movement in Hormuz shipping access as the primary catalysts capable of either accelerating the rally toward the $130–$150 range cited by analysts or triggering a sharp reversal.

**Mentioned tickers:** BNO, USO, XLE, XOM, CVX, BP, SHEL

Brent crude surged above $111 per barrel on April 29, 2026, extending an eight-session winning streak driven by the Strait of Hormuz blockade, U.S.-Iran war uncertainty, and the UAE's shock OPEC exit.

Crude Oil Crosses $111 on April 29, 2026: 5 Reasons Behind the 8-Day Rally

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