US blockade sends oil spiking
The U.S. announced plans to block maritime traffic to and from Iranian ports, which pushed oil prices above $100 a barrel as traders priced in disrupted Gulf flows. European oil prices were reported to have neared $150 a barrel, and analysts warned China could be a major economic casualty because of its reliance on Gulf oil and vulnerable trade routes. (theguardian.com) (irishtimes.com) (moneycontrol.com)
Oil jumped back above $100 a barrel on Monday after the United States said it would start blocking ships entering or leaving Iranian ports at 10 a.m. Eastern time. (cnbc.com) United States Central Command said the blockade would apply to vessels of all nations using Iranian ports and coastal areas, including ports on the Gulf and the Gulf of Oman. The New York Times reported the order was announced after weekend talks in Islamabad failed to produce a deal. (nytimes.com) Brent crude rose about 8 percent to roughly $102 to $104 a barrel in early trading, while United States West Texas Intermediate climbed to about $105. Reuters reported the move could keep roughly 2 million barrels a day of Iranian oil off the market. (reuters.com) The Strait of Hormuz is the narrow sea lane between Iran and Oman that carries a large share of the world’s seaborne oil. CBS News reported the United States said ships bound for non-Iranian ports would still be allowed through, but the blockade added new risk to a route already hit by weeks of war disruption. (cbsnews.com) The price shock was sharper in the physical market, where actual cargoes for immediate delivery in Europe traded far above futures. Reuters reported North Sea Forties crude reached $148.87 a barrel on April 13. (reuters.com) China faces a direct hit because it is the world’s largest oil importer and buys large volumes from the Gulf, including Iran. Reuters reported on April 13 that economists expect the Middle East crisis to cool China’s growth later in 2026 by squeezing profits and weakening demand. (reuters.com) Beijing called for restraint on Monday after the blockade threat. Reuters reported China urged all sides to avoid escalation after President Donald Trump threatened to blockade the strait when ceasefire diplomacy broke down. (reuters.com) Iran rejected the move and called it illegal. Al Jazeera reported Iran’s army said the United States plan “amounts to piracy,” while The Associated Press reported Tehran threatened ports across the Gulf and Gulf of Oman in response. (aljazeera.com) (apnews.com) Markets had briefly hoped the worst was over after a conditional ceasefire pushed Brent down to about $90 on April 8. By April 13, that relief had vanished, and traders were again pricing the Gulf as a live supply risk. (finance.yahoo.com) What happens next depends on whether the blockade stays limited to Iranian port traffic or spills into a wider fight over transit through Hormuz itself. For now, the immediate signal from oil markets is simple: traders see a new barrier in the Gulf and fewer barrels reaching buyers. (apnews.com)
