Hormuz blockade raises price alarms

Warnings over a United States blockade around the Strait of Hormuz are feeding fresh fears of higher fuel costs, even as pump prices eased slightly this week. (aaa.com) China’s foreign ministry said on April 13 that a blockade of the strait would run against “the international community’s interests” and urged calm and restraint by all sides. Reuters reported the statement as Beijing faced rising pressure from a route that carries a large share of China’s imported energy. (usnews.com) Market moves were immediate after President Donald Trump ordered the blockade over the weekend. CNBC reported the order would take effect at 10 a.m. Eastern time on April 13, and Bloomberg said European natural gas futures jumped as much as 18% in Asian trading before trimming gains. (cnbc.com) (bloomberg.com) The strait is a narrow shipping lane between Iran and Oman, and it is one of the world’s biggest energy chokepoints. The United States Energy Information Administration said flows through Hormuz averaged 20.9 million barrels a day in the first half of 2025, equal to about 20% of global petroleum liquids consumption. (eia.gov) Gas matters here too, not just oil. The Energy Information Administration said about 20% of global liquefied natural gas trade moved through Hormuz in 2024, while the International Energy Agency said Qatar and the United Arab Emirates together account for about 19% of global liquefied natural gas exports that rely on the strait. (eia.gov) (iea.org) That exposure helps explain why analysts focused on near-term price risk. Bloomberg reported on April 12 that the blockade threat drove a 17% jump in European gas prices, and CNBC said the move threatened to halt more tanker traffic and send oil higher. (bloomberg.com) (cnbc.com) American drivers have already felt some of the broader oil shock. AAA said the national average for regular gasoline was $4.09 on April 16, down 7 cents from a week earlier but still above the $4.00 mark, and ABC News said analysts saw further pump-price risk if Middle East supply losses deepen. (aaa.com) (abcnews.com) There is also a competing view inside the market. ABC News reported that some analysts said a blockade could speed a diplomatic settlement or reassure non-Iranian tankers enough to keep some flows moving, which could eventually ease the oil shock. (abcnews.com) For now, the core risk is simple: a narrow waterway that carries roughly one-fifth of the world’s oil and liquefied natural gas has become a military pressure point again. Until traffic normalizes or a ceasefire holds, traders and governments are treating Hormuz as a direct test of how much higher energy prices can go. (eia.gov) (iea.org)