Hormuz blockade lifts oil above $100
Reports say a US naval blockade around the Strait of Hormuz and collapse of diplomatic talks have pushed crude past $100, rattling markets and pressuring Asian equities. The geopolitical fallout includes public threats of heavy tariffs on China if it aids Iran, adding trade-policy risk to the energy shock. (thehindubusinessline.com) (indiatoday.in)
Oil jumped back above $100 a barrel on Monday after the United States said it would blockade maritime traffic tied to Iranian ports in the Strait of Hormuz. (reuters.com) Reuters reported Brent crude rose $7.11 to $102.31 a barrel by 2204 Greenwich Mean Time, while West Texas Intermediate gained $8.31 to $104.88 after weekend talks between Washington and Tehran ended without a deal. The New York Times reported the United States said the blockade would begin at 10 a.m. Eastern on Monday, April 13. (reuters.com) (nytimes.com) Asian markets fell with the oil move. Channel News Asia, citing Reuters, reported stocks sank across the region on April 13, and Indian benchmarks opened about 2 percent lower as traders priced in a new energy shock. (channelnewsasia.com) (economictimes.indiatimes.com) The Strait of Hormuz is the narrow sea lane between the Persian Gulf and the Gulf of Oman that carries one of the world’s biggest concentrations of energy exports. The United States Energy Information Administration said flows through the strait averaged 20 million barrels a day in 2024, equal to about one-fifth of global petroleum liquids consumption. (eia.gov) The International Energy Agency said about 25 percent of global seaborne oil trade moves through Hormuz and about 80 percent of that oil is destined for Asia. It also said only 3.5 million to 5.5 million barrels a day of pipeline capacity can bypass the chokepoint. (iea.org) That geography puts Asian importers first in line when prices jump. A June 2025 scenario analysis from MUFG said a $10-a-barrel oil increase would cut Asian current-account positions by 0.2 percent to 0.9 percent of gross domestic product and lift consumer inflation by 0.1 to 0.8 percentage points. (mufgresearch.com) The energy shock is colliding with trade risk. India Today reported President Donald Trump threatened tariffs of “at least 100%” on China if Beijing helped Iran, while the International Monetary Fund warned in October 2025 that higher United States tariffs and protectionism would weigh on Asian export demand. (indiatoday.in) (imf.org) Iran rejected the move and warned against enforcement. Reuters reported Iran’s Revolutionary Guards said military vessels approaching the strait would be viewed as a ceasefire breach, while other coverage said Iranian officials called the blockade unlawful and unworkable. (reuters.com) (thehindu.com) For now, traders are treating Hormuz as the price setter again. As long as military orders and failed diplomacy threaten a route that handles roughly 20 million barrels a day, oil, shipping, and Asian equities are likely to keep moving together. (eia.gov) (reuters.com)
