WTI crude oil unlikely to hit $160 in April amid Strait of Hormuz tensions

WTI crude oil’s chances of hitting $160 in April dropped to 0.8% YES on Polymarket, down from 1% yesterday, as traders price in possible supply disruptions through the Strait of Hormuz but remain deeply skeptical of a spike that large.

Market reaction

Sub-markets for WTI hitting $160 in April show almost no belief in a dramatic price surge within the next seven days. The backwardated oil futures curve implies traders expect the situation to resolve relatively quickly, even with immediate tensions elevated. The largest move in the past 24 hours was from 1% to 0.8%, a small shift that reflects limited conviction in a rapid price rise.

Why it matters

The market’s face value is $49,622/day, but actual USDC traded is only $514/day. This thin liquidity means it takes just $1,955 to move the market 5 percentage points, so even small orders can shift prices meaningfully. A YES position at 0.8¢ would pay a 125x return, but the lack of negotiation signals from Tehran keeps buyers away. Iran’s aggressive posture and the U.S.’s indefinite ceasefire extension create a scenario where tail risk is real but priced as very unlikely.

What to watch

Statements from Saudi Arabia’s Energy Minister and J.P. Morgan’s Natasha Kaneva could move sentiment, along with any OPEC+ announcements. The U.S. Congress faces a May 1 deadline under the War Powers Resolution to authorize military operations, which would directly affect how traders assess escalation risk.

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