Oil prices surge sharply after announcement of the Strait of Hormuz blockade

The oil market was shaken by the Trump administration’s statement about a planned blockade of the Strait of Hormuz, as a result of which futures prices for WTI and Brent crude exceeded the $100 per barrel mark. This move is expected to accelerate gasoline price increases both in the United States and globally.

Key takeaways:

• The Iran blockade announced by Trump on April 13 led to a sharp spike in WTI crude prices to $104, posing a threat to future gasoline prices in the U.S.
• The Consumer Price Index (CPI) rose by 0.9% in March amid the sharp increase in oil prices, forcing Trump to prepare for the consequences ahead of the midterm elections.
• According to GasBuddy, gasoline prices in the U.S. stand at $4.08, while Iranian politician Qalibaf warns that prices at the pump will soon exceed $5.

Oil prices rise after U.S. announces Strait of Hormuz blockade

Oil markets continue to experience heightened volatility driven by developments in the ongoing Middle East conflict.

After President Trump announced that the U.S. would impose a military blockade on vessels passing through the Strait of Hormuz following the failure of mediation efforts to end the current war, prices surged: at market open, WTI and Brent benchmarks jumped by 10%.

WTI futures climbed above $104 per barrel, while Brent rose above $102. U.S. Central Command (CENTCOM) stated that the blockade, targeting “all maritime traffic entering and leaving Iranian ports,” will take effect on April 13 at 10:00 ET, as announced by President Trump on social media.

This move is expected to drive gasoline prices higher at U.S. gas stations, which, according to GasBuddy, have already reached $4.08 per gallon.

President Trump himself recently acknowledged that high oil prices may persist until the upcoming congressional midterm elections. When asked by Fox News host Maria Bartiromo whether gasoline and oil prices would decline before the elections, he responded:

I hope so. I mean, I think they will, maybe, maybe, or they’ll stay the same, or possibly go a little higher, but overall they should remain around the same level.

Energy prices have already impacted the U.S. economy, contributing to a 0.9% rise in inflation in March, with the Consumer Price Index reaching 3.3% over the past 12 months.

Mohammad Bagher Qalibaf, Speaker of the Parliament of the Islamic Republic of Iran, advised Americans to “enjoy current gasoline prices.” “With the so-called ‘blockade,’ you will soon look back nostalgically at $4–5 gasoline,” he concluded.

See also: "Trump Allies Back CLARITY Act Ahead of Senate Return"

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