Global Oil Prices Continue to Rise, Breaching US$111 per Barrel

Global oil prices remain a focal point for markets amid rising geopolitical tensions in the Middle East. The conflict involving a major global energy trade route is beginning to have tangible impacts, not only on the energy sector but also on financial markets as a whole.

At the same time, investors appear to be exercising caution. Despite the surge in oil prices, global stock markets are showing relatively stable movements.

According to a report from The New York Times, the price of Brent crude, the global benchmark, rose about 2 percent to US$111 or Rp1.72 million per barrel. Meanwhile, West Texas Intermediate (WTI) crude, the US benchmark, also increased by 2 percent to around US$104 or Rp1.6 million per barrel.

This price increase came after US President Donald Trump stated that his government would assist ships trapped in the Strait of Hormuz. This strait is one of the world’s most vital energy trade routes.

In his statement, Trump said the United States would strive to ensure smooth ship traffic. “We will use our best efforts to help ships exit the strait that are not involved in the conflict,” he said, as quoted by the NYT on Monday, 4 May 2026.

However, Trump did not elaborate on how this mechanism would be implemented. The US Central Command indicated that its role would focus on coordinating ship traffic to keep it safe.

On the other hand, Trump also revealed that he is reviewing a peace proposal from Iran, though he doubts the agreement will be acceptable.

The situation in the Strait of Hormuz is the primary concern for investors. This narrow waterway between Iran and Oman is a crucial route through which about one-fifth of the world’s oil supply passes. Even minor disruptions in the area could trigger a global surge in energy prices.

Although oil prices have risen, stock markets are showing a more moderate response. S&P 500 futures contracts are expected to open slightly higher when trading resumes in the United States.