📰 Oil Price Jumps to Nearly $117 on Reports of Extended Iran Blockade
International oil prices continued their sharp climb on Wednesday, with Brent crude rising to approximately $116.98 per barrel — the highest level so far this month, according to BBC. The surge follows Tuesday’s close of just over $110 per barrel.
The rally was triggered by reports from the Wall Street Journal that President Donald Trump has instructed aides to prepare for an extended blockade of Iran’s ports, in an effort to further squeeze the country’s economy. In response, Iran has vowed to continue disrupting traffic through the Strait of Hormuz.
Oil prices have swung dramatically since February 28, when US and Israeli strikes against Iran began. The Strait of Hormuz — a critical chokepoint that normally carries about a fifth of the world’s oil and liquefied natural gas supply — has been effectively closed for weeks. Iran has severely restricted shipping through the waterway.
Earlier this month, Tehran warned that any vessel approaching the strait would be targeted. The US subsequently announced that its forces would intercept or turn back vessels traveling to or from Iranian ports.
Market analysts warn that if the blockade is extended, the tightening of global energy supplies could intensify further, with oil prices at risk of breaching the psychological $120 per barrel threshold. Meanwhile, reports suggest Iran’s oil storage facilities are nearing capacity, and the country may be forced to gradually cut production if the blockade persists.
The International Energy Agency (IEA) has previously stated that the ongoing geopolitical tensions are reshaping the global energy landscape, urging countries to accelerate their energy transition to reduce dependence on Middle Eastern oil.
Sources: BBC News, Wall Street Journal