Oil Price Surges to $119 on Reports of ‘Extended’ Iran Blockade
April 29, 2026 — Oil prices surged dramatically on Wednesday following reports that the United States is preparing to extend its blockade of Iranian ports. Brent crude rose to $119 a barrel (£88), the highest level this month, representing a nearly 7% increase in a single day.
According to the Wall Street Journal, President Donald Trump has instructed aides to prepare plans for expanding the ongoing blockade of Iran’s ports in an effort to further pressure the country’s economy. Earlier on Tuesday, Trump met with energy industry executives, including Chevron CEO Mike Wirth, at the White House to discuss how to limit the fallout from the conflict on American consumers.
Traders interpreted the meeting as a signal that the effective closure of the Strait of Hormuz will continue for a prolonged period. Iran has stated it will continue to disrupt shipping through the strait in response to the US blockade.
The Strait of Hormuz — A Global Energy Chokepoint
Iran has severely restricted shipping through the Strait of Hormuz since US and Israeli strikes began on February 28. The strait normally carries approximately one-fifth of the world’s supply of oil and liquid natural gas.
Earlier this month, Tehran warned that any vessel approaching the strait would be targeted. In response, the US announced that its forces would intercept or turn back vessels traveling to or from Iranian ports.
BBC Verify analysis has shown that at least four vessels tracked from Iranian ports have managed to cross the US blockade line.
Market Volatility Intensifies
Oil prices have experienced sharp swings in recent weeks. On April 17, Brent crude dropped to $90 a barrel following the announcement of a ceasefire between Israel and Lebanon. The US had said it would pause attacks on Iran on April 8. However, prices have been steadily climbing over the past 12 days as the US continued its blockade.
Lindsay James, investment strategist at Quilter, said that the impact of the war in the UK has so far been largely limited to higher petrol and diesel prices, but “every day that passes without a resumption of supply sees the risk of physical shortages and steeper price rises on a range of goods increasing.”
Analysts warn that if the blockade continues to expand, global supply chains could face even more severe disruption, with rising energy costs feeding through to commodity and service prices across the board.
Source: BBC News