Oil Price Today (April 7): Crude oil hovers above $110 as Trump’s Iran deadline keeps investors on edge. What’s next?

Trump warned that Iran would face serious consequences if it missed his 8 p.m. EDT Tuesday deadline to reopen the strait, saying the country “could be taken out” if it failed to comply. He went further, stating that the U.S. could destroy all of Iran’s bridges and power plants “within four hours” if no agreement is reached.

Crude oil price on April 7

Brent crude futures gained 57 cents, or 0.5%, to $110.34 per barrel as of 1202 GMT. U.S. West Texas Intermediate crude rose $1.26, or 1.1%, to $113.67 per barrel.At the same time, he claimed that Iranians were prepared to endure hardship for their freedom, referring to intercepted communications that allegedly urged the U.S. to “please keep bombing.”

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Iran, responding to a U.S. proposal conveyed through mediator Pakistan, rejected the idea of a ceasefire. It insisted that only a permanent end to the war would be acceptable and resisted pressure to restore access to the strait.

Iranian forces shut the Strait of Hormuz after U.S. and Israeli attacks began on February 28, disrupting a passage that typically accounts for around 20% of global oil flows.

Supply risks were further heightened after Russia said Ukrainian drones struck the Caspian Pipeline Consortium’s terminal on the Black Sea on Monday. The facility, which handles about 1.5% of global oil supply, reportedly suffered damage to loading and storage infrastructure.

Meanwhile, OPEC+ agreed on Sunday to increase oil output quotas by 206,000 barrels per day in May. However, the actual impact may be limited, as several members are unable to raise production due to export constraints caused by the strait closure.

What’s next?

Crude oil is holding at elevated levels, reflecting sustained strength driven by supply disruption fears, while natural gas remains largely range-bound with mild volatility, indicating a balanced demand-supply scenario.

International brokerage Macquarie has said that even if tensions ease in the near term, oil prices are likely to find support in the $85–$90 range, with a gradual move back toward $110 until normal flows through the Strait of Hormuz resume. The note added that if disruptions persist through April, Brent could still climb to $150 per barrel.

Looking ahead, crude prices could move higher from current levels. According to Kayanat Chainwala of Kotak Securities, oil may rise to $120 per barrel in the near term and potentially touch $150 if the conflict continues.

Nuvama Institutional Equities echoes the same view. The continued closure of the Strait of Hormuz, which handles around 20 million barrels per day, could push crude prices to the $110–150 per barrel range.

Experts say if ongoing tensions persist, the outlook for crude oil remains volatile and tilted upward. Continued conflict in the Middle East, especially disruptions around the Strait of Hormuz, would keep supply chains constrained, pushing Brent and WTI prices higher and sustaining inflationary pressures worldwide.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)