Oil price rises to $115 per barrel following reports that the US is preparing for an extended blockade of Iran.
- +Oil Price Climbs To $115 As US Signals Possible ‘Extended’ Iran Blockade
Global oil prices have risen sharply after reports that the United States is preparing to expand its blockade of Iran’s ports, intensifying concerns over already disrupted energy supplies from the Middle East.
Global oil prices have risen sharply after reports that the United States is preparing to expand its blockade of Iran’s ports, intensifying concerns over already disrupted energy supplies from the Middle East.
Brent crude climbed to around $115 (£85) a barrel on Wednesday, up from just over $110 (£81) at Tuesday’s close, before easing slightly to $114.37 (£84.68) by midday BST. The gains continue a volatile trend that has defined energy markets since the outbreak of conflict in the region.
The price spike followed a report by the Wall Street Journal that US President Donald Trump has instructed aides to prepare for an “extended” blockade of Iranian ports, aimed at tightening economic pressure on Tehran.
The development comes amid heightened tensions in the Strait of Hormuz, a critical global shipping route through which around a fifth of the world’s oil and liquefied natural gas normally passes. Iran has significantly restricted traffic through the waterway since US and Israeli strikes began on 28 February, effectively choking one of the world’s most important energy corridors.
Iran has also warned that vessels approaching the strait could be targeted, while the US has announced it will intercept or redirect ships travelling to or from Iranian ports. Analysis by BBC Verify indicates that at least four vessels tracked from Iranian ports appear to have crossed the US-declared blockade line.
Despite recent swings, oil prices remain well above pre-conflict levels. Brent crude fell to $90 a barrel on 17 April following a ceasefire between Israel and Lebanon and a temporary US pause in strikes on Iran earlier in April, but has since rebounded steadily as the blockade continued to tighten.
On Wednesday, Trump urged Tehran to engage diplomatically, saying Iran should “get smart soon” and agree to a deal. In a post on Truth Social, he added that the country “couldn’t get its act together.”
The Wall Street Journal also reported that US officials say the president has opted to maintain economic pressure through the blockade rather than escalate military action or withdraw from the conflict entirely, both of which were described as higher-risk options.
Iranian officials, meanwhile, said on Tuesday that the country could withstand the blockade, arguing it is relying on alternative trade routes to sustain its economy.
The World Bank warned on Tuesday that energy prices could surge by 24% in 2026, reaching their highest level since Russia’s full-scale invasion of Ukraine four years ago, if the most severe disruptions linked to the Iran conflict ease by May.
Financial markets have also been reacting to the uncertainty. European stocks fell on Wednesday as investors weighed corporate earnings and awaited the US Federal Reserve’s latest interest rate decision. The FTSE 100 dropped 0.76%, while the pan-European Stoxx index declined 0.4% at midday. France’s CAC fell 0.54% and Germany’s DAX edged lower.
In Asia, however, markets mostly rose, extending a recovery after sharp losses triggered by the initial shock of the conflict.
Analysts say sentiment remains fragile as traders reassess the likelihood of a resolution. Arne Lohmann Rasmussen, chief analyst at Global Risk Management, said: “The market is increasingly shifting towards a view that no longer expects a quick and lasting peace, nor an immediate reopening of the Strait of Hormuz.”
