Oil Prices Surge as US Siege of Iranian Ports Threatens Strait of Hormuz Supply

Oil prices surged on fears of prolonged supply disruption in the Strait of Hormuz and concerns about a lengthy US siege of Iranian ports, with markets reacting to stalled diplomacy and escalating military signals.

“Global crude oil prices are rising due to concerns over supply disruptions in West Asia and uncertainty surrounding US policy towards Iran”

ABP News

Al Jazeera reported that US crude settled up 6.95 percent at $106.88 per barrel on Wednesday, while Brent crude rose 6.08 percent, or $6.77, to $118.03 after earlier touching its highest price since June 2022.

ABP News

The same report said Brent crude futures for June continued to rise on Thursday to $119.94 per barrel as of 00:57 GMT, and US West Texas Intermediate futures were at $107.51.

Reuters was cited by Al Jazeera for the figures and for the framing that “Prospects for any near-term resolution to the Iran conflict or a reopening of the Strait of Hormuz remain dim,” attributed to IG market analyst Tony Sycamore.

The Washington Post described the move as Brent crude surging past $125 a barrel early Thursday, linking the jump to “stalled U.S.-Iran talks” and doubts about reopening the Strait of Hormuz and a permanent end to the Iran war.

BBC coverage similarly tied the jump to a report that the US military was set to brief President Donald Trump on new Iran options, with Brent crude rising “by almost 7% to more than $126 (£94) a barrel at one point.”

Across the coverage, the Strait of Hormuz remained the central pressure point, described by the BBC as “still effectively closed,” and by Al Jazeera as a corridor where Iranian forces imposed a blockade on transit of vessels while the US besieged Iranian ports and shipping.

Multiple outlets connected the price surge to US planning for continued pressure on Iran’s shipping, including discussions with oil executives and preparations for potential military action.

Al Jazeera said a White House official told reporters on Wednesday that US President Donald Trump had asked US oil companies about ways to mitigate the impact of a potentially months-long siege of Iranian ports, adding that the president and oil executives “discussed the steps President Trump has taken to alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimize impact on American consumers.”

Al Jazeera

BBC reported that the US military is set to brief Trump on new plans for potential action in the Iran war, citing Axios that US Central Command prepared a plan for a wave of “short and powerful” strikes on Iran to try to break the deadlock in negotiations with Tehran.

The BBC also described another Axios-reported plan focused on taking over part of the Strait of Hormuz so that it can be reopened for commercial shipping, noting that doing so could involve troops on the ground.

In the Guardian, the same pressure theme was framed through Trump’s warning that the US blockade of Iranian ports could last “months,” with the article saying peace talks remained stalled and that US-Iran talks set for Islamabad in Pakistan “over the weekend failed to materialise.”

The Guardian also quoted Trump telling Axios that “The blockade is somewhat more effective than the bombing,” and added that “They are choking like a stuffed pig.”

In parallel, ynetnews described the market reaction as tied to reports that a White House official said Trump and oil-company representatives discussed imposing a months-long blockade on Iran “if necessary,” and it included Trump’s Axios interview line that “the naval blockade, to some extent, is more effective than the bombings.”

Reuters reporting carried by gCaptain added that Trump discussed how to mitigate the impact of a possible months-long US blockade of Iran’s ports with oil companies, and that the talks followed a deadlock in efforts to resolve the conflict.

Together, the accounts depict a policy mix of blockade continuation, negotiation deadlock, and contingency planning for strikes or operational changes around the Strait of Hormuz.

While the US side emphasized blockade continuation and contingency planning, Iranian threats and negotiation positions were described as keeping escalation risk alive and sustaining market anxiety.

“Oil jumps to highest price since 2022 after report Trump to be briefed on new Iran options Oil prices have jumped to their highest since 2022 after a report that the US military is set to brief President Donald Trump on new plans for potential action in the Iran war”

BBC

BBC said the US would blockade Iranian ports “for as long as Tehran continues to threaten vessels that try to use the Strait of Hormuz,” and it described Iran’s response as threatening to attack ships in the waterway, through which about a fifth of the world’s energy usually passes.

The BBC also quoted Naveen Das, senior oil analyst at Kpler, saying “It does seem as though escalation in the war is back on the table,” and he linked that to both “the US continuing its blockade in Iran” and “reports and rumours that in order to get out of this bind, Iran may start to strike again.”

In the Guardian, the article said Iran responded by keeping the strait of Hormuz “all but shut to other oil tankers,” and it described the stalemate as grinding on after talks failed to materialise in Islamabad.

The Guardian also reported that Trump told Axios, “They are choking like a stuffed pig,” and that the war was about to enter its 10th week despite Trump’s initial projections of a 4-6 week conflict before Tehran would buckle.

Reuters reporting carried by gCaptain added that Tehran warned on Wednesday of “unprecedented military action” against continued U.S. blockading of Iran-linked vessels, and it reiterated the US position that Iran cannot have a nuclear weapon while Tehran says its nuclear ambitions are peaceful.

gCaptain further described Iran’s nuclear stance and its demand for US acknowledgment of its right to enrich uranium for what it says are peaceful, civilian purposes, while also stating that Iran has a stockpile of about 440 kilograms (970 pounds) of uranium enriched to 60%.

The same Reuters-based account said Iran has pledged to continue disrupting traffic through the strait as long as it is threatened, and it described the US beginning blockading Iranian ships this month.

Together, the sources portray a cycle in which blockade and threats reinforce each other, with analysts warning that even limited escalation could have “outsized implications” for global energy supplies, as BBC attributed to economics professor Yeow Hwee Chua.

Beyond the Iran blockade, the sources also linked oil-market volatility to the United Arab Emirates’ decision to leave OPEC and OPEC+, with Trump welcoming the move while analysts said it was unlikely to offset the Strait of Hormoz disruption in the near term.

Al Jazeera reported that President Trump welcomed the announced withdrawal of the UAE from OPEC, saying, “I think it’s great,” and it quoted Trump adding, “I think ultimately it’s a good thing for getting the price of gas down, getting oil down, getting everything down.”

EnergyWatch

The Al Jazeera account said the UAE announced on Tuesday it would leave OPEC and the broader OPEC+ alliance effective on May 1, and it described experts expecting the move after years of open dissatisfaction with OPEC’s policy of capping members’ production.

Al Jazeera also said experts told the outlet that the UAE’s departure was unlikely to have an immediate impact on the market because the UAE’s exports are constrained by Iran’s control of the Strait of Hormuz.

Reuters was cited by Al Jazeera for Wood Mackenzie analysts’ view that “Gulf countries, including the UAE, will take months to return to pre-war production volumes.”

In ynetnews, the UAE’s withdrawal was described as a “dramatic withdrawal from OPEC” that came as a severe blow to the oil exporters’ organization and to the battle over its leadership by Saudi Arabia.

Another outlet in Arabic, Al Arabiya Net as cited by the West Asian source, said Trump ordered aides to prepare for a prolonged blockade and that the market was also assessing the UAE’s decision to withdraw from OPEC and OPEC+.

The West Asian source also reported that the UAE’s decision to withdraw from OPEC and OPEC+ would take effect from May 1, 2026, and it included details about the OPEC+ alliance being formed in 2016 between OPEC with 12 member nations and independent allies (11 countries).

Taken together, the coverage portrays a market balancing act: a political shift in OPEC membership expectations alongside a physical chokepoint disruption in the Strait of Hormuz.

As oil prices climbed, the sources also described inventory movements and broader economic consequences, including inflationary pressure and bond-yield moves tied to the prospect of a prolonged Hormuz disruption.

“Strait of Hormuz Nears Third Month of Closure A fully-laden Japan-linked oil tanker completed a rare transit of the Strait of Hormuz, as the effective closure of the waterway to most international traffic enters its third month”

gCaptain

The West Asian source said oil prices edged down on Wednesday after earlier gains, while reporting that the Strait of Hormuz closure continued to push draws from global inventories, with market sources saying API data indicated a draw in US crude stocks.

gCaptain

It stated that crude inventories fell by 1.79 million barrels in the week ended April 24, while gasoline inventories fell by 8.47 million barrels and distillates fell by 2.60 million barrels.

In the Guardian, the article said global oil supplies drop by nearly 20 million barrels every day the strait is choked off, and it cited Oxford Economics warning that a six-month impasse could send oil prices as high as $190 by August.

The Guardian also reported market strategist Jim Reid at Deutsche Bank saying the jump in oil price was feeding “growing fears about an extended stagflationary shock,” and it connected that to rising interest rates and yields, including “Japan’s 10-year yield move up to 2.51%” and “the 10-year [German] bund yield at a post-2011 high of 3.11%,” plus “10-year [UK] gilt yields hit a post-2008 high of 5.07%.”

The Guardian further quoted economist Paul Krugman saying he believed most analysts have been “far too sanguine,” and he wrote on his Substack on 20 April that “In my view, a full-on global recession is more likely than not if the strait remains closed for, say, another three months, which seems all too possible.”

It also reported US inflation soared in March with prices up 3.3% over the year, and it said Britain faced a £35bn economic hit and the risk of a recession in 2026 because of the war, according to a thinktank warning.

Al Jazeera’s reporting from Seoul added a regional dimension, saying almost the entire Asia Pacific region is dependent on oil imports and that “millions if not billions across the region are already suffering from elevated fuel prices as well as higher prices for basic goods and commodities,” while citing the Asian Development Bank cutting its growth forecast from 5.1 percent to 4.7 percent.

Finally, BBC included a direct line from Will Walker-Arnott, investment manager at Raymond James, telling the Today programme that “People are really beginning to worry about the inflationary impact coming through from the rise in the oil price,” and it linked the concern to the question of how long the administration can withstand “the economic heat.”