Analysts: Oil could spike to $150 if the Hormuz standoff drags on

April 28 — International crude prices firmed again after U.S.-Iran talks stayed stalled and flows through the Strait of Hormuz were disrupted. WTI climbed back above $100 a barrel, while both WTI and Brent gained more than 2% on the session. The White House said President Trump and his national security team have reviewed Iran's latest proposal. Tehran is seeking the removal of U.S. port blockades and an end to hostile actions in return for resuming shipping through the Strait of Hormuz. Trump said sanctions relief would only be considered once any agreement is "100% implemented," and the two sides have yet to reach a consensus. Tamas Varga, senior analyst at PVM Oil Associates, said a break above $150 is "not impossible" if the conflict becomes prolonged. He argued the global market lacks sufficient alternative energy sources to offset the supply shortfall, and extended disruptions would outweigh the effect of softer demand. Andy Lipow, president of Lipow Oil Associates, added that even if tensions ease immediately, clearing mines, easing tanker congestion and restoring output would take months, with the market likely needing at least four to six months to stabilize. Several Wall Street firms have also lowered their expectations for an oil-market recovery. Goldman Sachs pushed back its timeline for Gulf energy exports to normalize to the end of June. Citigroup said that if the Strait of Hormuz remains blocked through late June, Brent could reach $150 per barrel.