---
title: "Oil futures signal temporary supply shock despite Gulf tensions"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287087063.md"
description: "Oil prices surged due to US-Israeli strikes on Iran, with Brent reaching nearly $120 a barrel. The market is experiencing backwardation, indicating immediate supply stress but potential gains for long traders. However, futures suggest that the disruption will be short-lived, with expectations for supply normalization as spreads narrow in the future."
datetime: "2026-05-20T14:55:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287087063.md)
  - [en](https://longbridge.com/en/news/287087063.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287087063.md)
---

# Oil futures signal temporary supply shock despite Gulf tensions

Prices surge on conflict: WTI and Brent spiked after US-Israeli strikes on Iran shut the Strait of Hormuz, with Brent peaking near $120 a barrel. Backwardation dominates curve: Near-term contracts trade at steep premiums, reflecting immediate supply stress but also creating roll yield gains for long traders. Market sees quick recovery: Futures imply the disruption will be short-lived, with spreads narrowing further out, signaling expectations for supply normalization.

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