Hormuz Crisis, Rising Oil Prices and Tense Gas Market Shape New Reality for Global Energy and Investment Decisions 28 April 2026
The global fuel and energy sector enters Tuesday, 28 April 2026, in a state of heightened volatility. The primary focus for investors, oil companies, energy sector participants, fuel traders, refineries, and electricity producers is the ongoing tension surrounding supply routes through the Hormuz Strait. This factor continues to dictate the dynamics of oil, gas, LNG, petroleum products, coal, electricity, and renewable energy sources in the global market.
After several weeks of disruptions in Middle Eastern logistics, the oil market remains in a zone of high geopolitical premium. Brent is trading near levels above $100 per barrel, WTI is holding around the mid-$90s range, and market participants are increasingly evaluating not just the cost of raw materials but also the risk of shortages of diesel, jet fuel, LNG, and stable power generation. For the global investor audience, this means one thing: energy once again becomes a key indicator of inflation, industrial resilience, and corporate profitability.
Oil: Market Prices in Long Period of High Raw Material Costs
The oil market remains a central element of the global energy agenda. Limited supplies from the Persian Gulf region, disruptions in tanker logistics, and buyer caution support high oil prices. Unlike the short-term spikes of previous years, the current rise is perceived by investors as more structural: the issue affects not only production but also export routes, insurance, freight, refining, and end prices of petroleum products.
Key factors for the oil market as of 28 April 2026 include:
- Ongoing high geopolitical premium in Brent and WTI prices;
- Shortage of Middle Eastern barrels on the global market;
- Increasing role of the U.S. as a supplier of oil and petroleum products to Asia, Europe, and Latin America;
- Revisions of price forecasts for oil from major investment banks;
- Risk of further inflationary pressure in energy-importing countries.
For oil companies, the current situation creates a dual effect. On one hand, high prices support cash flows from producing assets. On the other hand, expensive oil lowers demand, escalates political pressure on the sector, and increases the likelihood of regulating exports, stockpiles, and domestic fuel prices.
Gas and LNG: Hormuz Strait Becomes Major Bottleneck
The natural gas and LNG market is experiencing one of its most challenging periods in recent years. Disruptions in supplies through the Hormuz Strait are especially sensitive for the global LNG market, as a significant portion of Middle Eastern LNG has traditionally been directed to Asia. Buyers in Japan, South Korea, China, India, and Southeast Asia are forced to compete for alternative supplies from the U.S., Africa, Australia, and other export hubs.
In Europe, the situation remains tense as well. Even with reduced gas demand in some countries, the issue of filling storage before the next winter season is becoming more costly. To reach comfortable storage levels, Europe needs to attract more LNG, but competition with Asia is driving up the cost of such supplies.
Key takeaways for the gas market:
- LNG remains a strategic resource for energy security.
- Asia is intensifying competition for flexible supplies from the Atlantic basin.
- European gas storage levels are becoming a price risk factor as early as spring.
- Expensive gas is increasing interest in coal, nuclear energy, hydropower, and renewables.
Petroleum Products and Refineries: Refining Margins Remain High
The refining sector has emerged as one of the main beneficiaries of the current energy shock. The shortage of middle distillates—diesel, jet fuel, and heating fractions—supports high refinery margins. Especially strong positions are held by plants located outside troubled zones that have access to stable raw materials.
American refineries, Asian processors, and large export-oriented plants benefit from the growth in demand for diesel and jet fuel. However, for consumers of petroleum products, the situation is considerably more complex: transport, aviation, industry, and agriculture are facing rising costs.
For investors in the refining sector, three indicators are currently crucial:
- Spreads between crude oil and petroleum products;
- Availability of raw materials for refineries in Asia, Europe, and the U.S.;
- Export volumes of diesel, gasoline, and jet fuel in May and June.
If supplies through the Hormuz Strait do not normalise, petroleum products may remain a more significant inflationary factor than oil itself. This is particularly important for countries with a high share of fuel imports.
Electricity: Expensive Gas Alters Generation Balance
The global electricity market is responding to the energy crisis through an increase in the utilisation of backup capacity. Countries dependent on gas generation are witnessing sharper volatility in wholesale prices. In regions where electricity generation relies on hydropower, nuclear energy, coal, or significant renewable energy sources, the price impact is softer.
This contrast is especially evident in Europe. Gas-dependent energy systems face pressure, while countries with developed hydropower, nuclear generation, or a significant share of solar and wind capacities enjoy a protective effect. For businesses, this translates into a competitiveness factor: the cost of electricity directly impacts metallurgy, chemicals, logistics, data centres, and industrial production.
At a global level, the electricity sector is entering a phase where not only the price per megawatt-hour matters, but also the reliability of generation. Investors are increasingly assessing energy systems based on their ability to endure stress periods without sharp tariff fluctuations.
Renewables: Energy Crisis Boosts Interest in Renewable Sources
Renewable energy is gaining new momentum against the backdrop of expensive oil and gas. Solar, wind, and hydropower projects are becoming not only a climate but also an economic tool for protection against imported inflation. For countries reliant on gas and petroleum product imports, renewables are increasingly viewed as part of an energy independence strategy.
However, the rapid growth of renewables does not negate systemic limitations. Solar generation creates oversupply during daylight hours but requires storage and backup capacity in the morning and evening. Wind generation is weather-dependent. Hydropower is efficient with adequate water resources but vulnerable to droughts.
Therefore, the most resilient model becomes the combined energy system:
- Renewables as a source of cheap base generation in favourable hours;
- Gas and coal stations as reserves for peak demand;
- Nuclear energy and hydropower as stabilising components;
- Energy storage and networks as the infrastructural foundation of new electricity systems.
Coal: Demand Supported by Asia and Peak Loads
Despite the long-term trend towards decarbonisation, coal remains an important part of the global energy balance. Rising electricity demand in Asia, heatwaves, industrial loads, and high gas prices support the use of coal-fired generation. India is already ramping up output at coal and gas stations to meet record peaks in electricity consumption.
For the coal market, this translates to sustained demand, particularly in countries where the energy system must provide affordable and continuous generation. Nonetheless, political pressure on coal persists: new investments in coal assets are being assessed with caution, and banks and funds are increasingly demanding a clear strategy for reducing emissions.
The coal sector in 2026 finds itself between two forces: the short-term need for reliable generation and the long-term trajectory towards reducing carbon emissions. For investors, this is a market of selective asset picking with sustainable demand, logistical advantages, and manageable environmental risks.
Corporate Deals in the Energy Sector: Major Companies Acquire Resource Bases
Amid the energy shock, large oil and gas companies are eager to strengthen their resource bases and access to export infrastructure. Transactions in the upstream and LNG sectors become particularly significant as investors reassess not only green transformation but also the physical availability of oil and gas.
A notable example is Shell's substantial deal to acquire Canadian ARC Resources. For the market, this signals that international energy companies are willing to pay for assets with reserves, gas production, and proximity to LNG infrastructure. In the context of unstable Middle Eastern supplies, North America is emerging as a key hub for energy security.
The corporate logic in the energy sector is changing:
- Assets with low production costs gain value;
- Interest in gas as a transition fuel is increasing;
- LNG infrastructure is becoming a strategic advantage;
- Companies are enhancing control over the supply chain from production to export.
What Investors Should Watch for on 28 April 2026
For investors, the global energy sector remains one of the critical markets in the coming weeks. The key question is whether the global energy system can restore normal supplies through the Hormuz Strait or if the market will enter a longer period of shortages and high logistics costs.
Points of focus for Tuesday, 28 April 2026, include:
- The dynamics of Brent and WTI near psychologically significant levels;
- The state of oil, gas, and LNG supplies from the Middle East;
- Refinery margins on diesel, gasoline, and jet fuel;
- Gas storage levels in Europe and competition for LNG with Asia;
- Rising demand for coal and gas generation during peak consumption periods;
- Acceleration of investments in renewables, networks, and energy storage;
- Corporate transactions in the oil and gas sector and reassessment of resource assets.
The main takeaway of the day: news in oil and gas and energy is currently shaping not just the industry but also the macroeconomic agenda. High oil prices, a tense gas market, high margins for petroleum products, the growing role of refineries, the return of coal during peak demand periods, and the acceleration of renewables paint a complex yet investment-rich picture. For energy sector participants, 28 April 2026, becomes a day when energy security once again comes to the forefront of the global economy.
