On Monday, Brent crude oil, set for delivery in May, experienced a significant decline of 2.84%, closing just above $100 per barrel at $100.21. This price drop followed a high closure of $103.14 on Friday, marking its peak since 2022, with an early Monday surge reaching $106.50. Despite these fluctuations, the market remains uncertain due to ongoing geopolitical tensions in Iran and the strategic Strait of Hormuz, which continue to influence oil supply dynamics.

The pressures from former President Trump urging allies to form a coalition for the protection of tankers navigating the Strait of Hormuz have not resulted in formal support but have led to unexpected consequences that may impact crude oil pricing. The situation highlights how external political actions can ripple through global markets, creating instability in pricing despite fundamental supply and demand factors.

As geopolitical numbers continue to fluctuate, the oil market is likely to remain volatile, with prices potentially swayed by future developments in Iranian relations and the stability within the region. The uncertainty is compounded by other global economic factors that may affect both demand and supply as countries navigate through post-pandemic recovery and energy transition policies.