Oil climbs as Hormuz closure stokes supply fears

Oil prices advanced on April 28, 2026, as traders reacted to deepening concerns over supply disruptions tied to the shutdown of the Strait of Hormuz. Brent crude (UKOIL) rose 2.8% to $111.26 per barrel, marking its seventh consecutive session of gains. West Texas Intermediate crude (USOIL) climbed 3.7% to $99.93 per barrel after briefly trading above $100 earlier in the day.

The sustained rally underscores how sensitive global benchmarks remain to shipping constraints in key chokepoints. Market data indicated that both major crude contracts were building on a week-long upward trend as the prospect of a rapid resolution to the disruption appeared limited.

The Strait of Hormuz, a crucial maritime corridor for energy shipments, remains effectively closed. The disruption has cut off most Gulf oil exports and is affecting about 20% of global oil and liquefied natural gas supplies. This has tightened available seaborne volumes and amplified concerns over near term supply security.

With a significant share of global crude and gas normally transiting the strait, the closure is feeding into higher spot prices and increased volatility. Market participants are closely monitoring shipment data and diplomatic developments to assess how long the constraints might last.

The United Arab Emirates’ decision to exit OPEC has introduced another layer of uncertainty for the oil market. While the move has raised questions about future production policy in the region, analysts cited in the narrative noted that any potential increase in UAE output would face logistical hurdles while the Strait of Hormuz remains blocked.

As a result, the UAE’s departure has not alleviated concerns about supply availability. Instead, it has contributed to a more complex outlook for producers and consumers, with production decisions now intersecting with constraints on export routes.

The World Bank has warned that the current tension around the Strait of Hormuz could feed into broader energy cost pressures. It projected that global energy prices could rise by 24% in 2026, reaching their highest level since the onset of the Ukraine conflict.

The projection assumes that supply disruptions may ease by May, yet still points to a substantial increase in average prices for the year. This suggests that even a partial normalization of flows through Hormuz may not fully reverse the upward pressure driven by recent geopolitical strains.

The combination of the Hormuz closure, altered producer dynamics following the UAE’s OPEC exit, and the World Bank’s price outlook has left energy markets focused on supply risk. Price moves in Brent (UKOIL) and WTI (USOIL) on April 28 reflected this heightened sensitivity to any news on the duration or scale of the disruption.

Investors, policymakers, and energy intensive industries are watching for signals on export resumptions and potential policy responses. The current configuration of factors points to an environment in which physical bottlenecks and geopolitical developments play a central role in shaping oil and broader energy pricing through 2026.