Hormuz tensions lift oil
Rising tensions around the Strait of Hormuz pushed crude above $100 a barrel and threatened shipping lanes that carry almost a fifth of the world’s oil and gas supplies. (indianexpress.com). U.S. reports say Washington is planning to intercept ships and clear mines to reopen the passage, a move aimed at keeping flows moving amid the standoff. (indianexpress.com). The spike is already producing political pushback at home as higher fuel costs complicate policy options, according to recent coverage. (thedailybeast.com)
Oil shot above $100 a barrel after Washington said it would start blocking ships tied to Iranian ports in the Strait of Hormuz on Monday. (cnbc.com) President Donald Trump said on April 12 that the United States Navy would begin the process of blockading vessels trying to enter or leave the strait, and United States Central Command later said enforcement would start at 10 a.m. Eastern time on April 13. United States Central Command also said ships sailing to and from non-Iranian ports would not be impeded. (cnbc.com) Brent crude rose as much as 8% early Monday to about $104 a barrel after closing Friday near $94, according to market coverage published April 13. The jump followed failed weekend talks in Islamabad aimed at ending the Iran war. (telegraph.co.uk) The waterway at the center of the standoff is a narrow sea lane between Iran and Oman that links the Persian Gulf to the Arabian Sea. The International Energy Agency said the strait carried about 20 million barrels a day of oil and oil products in 2025, or roughly 25% of global seaborne oil trade. (iea.org) The gas market runs through the same passage. The International Energy Agency said almost 20% of global liquefied natural gas trade, including most exports from Qatar and the United Arab Emirates, also moved through Hormuz in 2025. (iea.org) The problem for traders is that there are few detours. The International Energy Agency estimated only 3.5 million to 5.5 million barrels a day of pipeline capacity is available to bypass the strait, far below the nearly 20 million barrels a day that normally move through it. (iea.org) Washington has paired the blockade threat with a mine-clearing operation. Reuters reported on April 11 that Trump said United States forces had started clearing the strait after reports of Navy ships entering the area, while Iranian state media cited military denials about the transit. (militarytimes.com) Iran has called the planned blockade illegal. The Associated Press reported on April 13 that Tehran threatened ports and shipping across the region as the United States prepared to impose the new maritime restrictions. (apnews.com) Even before a full closure, reduced traffic was enough to move prices. The United States Energy Information Administration said in a June 2025 analysis that any temporary disruption at Hormuz can delay supplies, raise shipping costs and push world energy prices higher. (eia.gov) What happens next is now a military and commercial test at once: whether the United States can keep non-Iranian cargo moving, and whether shipowners and crews believe the route is safe enough to use. (cnbc.com)
