Oil Jumps on US Hormuz Blockade

2026-04-12 22:05 By Anna Fedec 1 min. read

WTI crude futures climbed as much as 9.3% to above $105 per barrel on Monday, recouping losses from last week after President Donald Trump announced a US blockade of the Strait of Hormuz, following the collapse of weekend negotiations with Iran.

The restrictions will apply only to vessels entering or leaving Iranian ports starting at 10 a.m.

Eastern Time.

Talks held in Pakistan failed to produce an agreement, with the US accusing Tehran of refusing to curb its nuclear ambitions, while Iran reportedly sought control of the strait, war reparations, a broader regional ceasefire (including Lebanon), and access to frozen overseas assets.

The key shipping route has effectively remained closed since the conflict began, driving sharp gains in oil and gas prices and raising concerns about inflationary pressures and weaker global growth.

Meanwhile, Saudi Arabia said it has restored full pumping capacity through its East-West pipeline to the Red Sea, along with output from the Manifa field.



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