On Wednesday, 29th April 2026, oil prices surged following reports that the United States intends to prolong its blockade of Iranian ports, thereby likely escalating supply disruptions from the strategically vital Middle Eastern producing region. According to a report made on Tuesday, President Donald Trump has instructed his aides to prepare for an extended maritime blockade of Iran, opting to continue squeezing the nation’s economy and oil exports by preventing shipping to and from its ports.
In turn, Brent crude futures for June rose by 0.47 percent, to USD 111.78 per barrel, marking an eighth consecutive day of gains, while the more active July contract stood at USD 104.84, up 0.4 percent. Similarly, U.S. West Texas Intermediate futures for June increased by 0.57 percent, to USD 100.50 per barrel, building on a 3.7 percent gain in the previous session and climbing for seven of the last eight days.
Analysts have attributed the recent price surge directly to the ongoing blockade of the Strait of Hormuz. They also noted that if President Trump is prepared to extend the blockade, supply disruptions would worsen further and continue to push oil prices higher. Although a ceasefire currently holds in the U.S.-Israeli conflict with Iran, the situation remains deadlocked as both sides seek a formal end to hostilities.
Iran has halted shipping flows through the Strait of Hormuz while the United States maintains its blockade of Iranian ports. The U.S. continues to press for an end to what it claims is Iran’s nuclear weapons programme, whereas Iran is demanding reparations from the latest round of fighting, an easing of economic sanctions, and some form of control over the strategic waterway.
US Oil Inventories Fall
The prolonged shutdown of the Strait of Hormuz is continuing to drive draws from global oil inventories. Market sources reported late on Tuesday that the American Petroleum Institute recorded a second consecutive weekly decline in U.S. crude oil inventories, with stocks falling by 1.79 million barrels in the week ended April 24. Furthermore, gasoline inventories declined by 8.47 million barrels, and distillate inventories fell by 2.60 million barrels. These inventory draws underscore the tangible impact of ongoing supply disruptions on the physical oil market, reinforcing upward price pressure amid heightened geopolitical uncertainty.
In a separate but potentially consequential development, the stunning loss of the United Arab Emirates, a longstanding member of both OPEC and OPEC+, could sow disorder within and substantially weaken the energy-producing bloc. The departure of such a key member raises questions about the future cohesion and effectiveness of the organization in managing global oil supply.
As the conflict remains deadlocked and both sides seek a formal resolution, the interplay between geopolitical maneuvers and oil market fundamentals continues to dictate price trajectories, with market participants closely monitoring any further escalation or easing of hostilities in the region.
