U.S. blockade, oil surge
The U.S. has ordered a naval blockade near the Gulf of Oman, sending European oil prices toward about $150 a barrel. (irishtimes.com). Markets are bracing for policy shocks and higher input costs as traders reprice tariffs, supply risk and energy exposure. (investing.com).
The United States ordered a naval blockade of Iranian ports on Monday, widening the Iran war and driving immediate-delivery oil in Europe close to $150 a barrel. (apnews.com) (nst.com.my) United States Central Command said the blockade would start at 10 a.m. Eastern time on April 13 and apply to vessels of all nations entering or leaving Iranian ports on the Arabian Gulf and Gulf of Oman. President Donald Trump announced the move after weekend talks with Iran in Islamabad ended without a deal. (abcnews.com) (usnews.com) Brent crude futures for June delivery rose more than 6 percent to above $100 a barrel on Monday, while North Sea Forties crude, a physical cargo benchmark used by European refiners, reached $148.87 a barrel, according to LSEG data reported by Reuters. The gap matters because futures are paper contracts for later delivery, while physical cargoes are barrels refiners need now. (ft.com) (somoynews.tv) The Strait of Hormuz is the narrow shipping lane between Iran and Oman that carries a large share of the world’s seaborne oil. Reuters reported on April 7 that the war had already shut in at least 12 million barrels a day, about 12 percent of global supply, before Monday’s blockade order added another layer of risk. (usnews.com) (cna.com) That is why traders are repricing more than oil. Investing.com wrote that markets were already bracing for tariff shocks, supply-chain disruption and higher input costs, and the blockade adds a new shipping and energy premium on top of those fears. (investing.com) (cnbc.com) Shipping data showed some tankers steering away from Hormuz ahead of the start time, though two Iran-linked tankers still exited the Gulf on Monday. CBS and ABC reported that the United States said neutral vessels not using Iranian ports would still be allowed to transit the strait. (alarabiya.net) (cbsnews.com) Iran answered with a threat of retaliation against ports across the Persian Gulf and Gulf of Oman. State media said, “Security in the Persian Gulf and the Sea of Oman is either for everyone or for no one,” according to Reuters reporting carried by multiple outlets. (military.com) (yahoo.com) Trump said he did not care whether Iran returned to negotiations after the failed weekend talks, while Iran said the two sides had come close to a deal before the talks collapsed. The next test is whether the blockade stays limited to Iranian port traffic or pulls the wider waterway, and more oil cargoes, into the conflict. (irishtimes.com) (euronews.com)
