Oil Spikes As Hormuz Closes In US‑Iran Clash

Oil prices rose sharply on April 19 as a standoff between the United States and Iran effectively halted tanker traffic through the Strait of Hormuz, a key global energy chokepoint that typically handles roughly one-fifth of seaborne oil trade.

In early Sunday trading on the Chicago Mercantile Exchange, U.S. crude climbed 6.4% to $87.88 per barrel, while Brent crude (UKOIL), the international benchmark, gained 6.5% to $96.25 per barrel. Separate reporting said Brent (UKOIL) and West Texas Intermediate (USOIL) (WTI) both surged more than 7% as markets reacted to intensifying military confrontations.

CNN-cited maritime tracking data showed that no tankers successfully transited the Strait of Hormuz on Sunday. Analysts warned that a prolonged closure could create a major supply shock and push crude prices rapidly toward the $120 range, raising the risk of a broader global energy crisis.

The latest spike follows more than two days of shifting expectations around access to the strait. Iran said Friday it would fully reopen the passage off its coast to commercial traffic, prompting crude prices to plunge more than 9% on that news.

Tehran reversed course on Saturday after President Donald Trump said a U.S. Navy blockade on ships traveling to and from Iranian ports would remain in place. Iran’s Revolutionary Guard subsequently fired on several vessels, and Iranian forces reimposed what has been described as a total blockade of the strategic waterway.

French shipping company CMA CGM confirmed that one of its vessels came under fire in the Strait of Hormuz on Saturday. Shipping firms including A.P. Moller – Maersk and Frontline have begun rerouting vessels as insurance premiums for Gulf transits jump.

Over the weekend the confrontation escalated at sea. President Trump said the guided missile destroyer USS Spruance fired on and seized the Iranian-flagged cargo ship Touska in the Gulf of Oman after it allegedly tried to breach a naval blockade.

Reports described a kinetic interception in which U.S. forces disabled Touska by striking its engine room before taking custody of the ship and crew. Iranian officials have condemned the seizure, and Iranian media characterized U.S. actions as armed piracy.

In response, Iranian forces launched drone strikes targeting U.S. military ships operating in the region, according to Iranian and regional media. Both sides have reinforced their naval presence as the conflict over control of the Strait of Hormuz intensifies.

The renewed shutdown of Hormuz comes just days after a very different signal from Tehran. On April 17, Iran indicated the strait would stay operational during an Israel-Lebanon ceasefire, easing fears of an immediate supply shock and sending U.S. equities higher.

That announcement coincided with steep declines in oil benchmarks, with Brent (UKOIL) at about $88.90 per barrel and U.S. crude near $83.08. Investors rotated out of energy stocks, hitting names such as Valero Energy, APA Corp., Exxon Mobil (XOM) and Chevron (CVX), while moving into sectors seen as beneficiaries of lower fuel costs, including airlines and cruise lines.

Forecasts at the time from the U.S. Energy Information Administration projected Brent could average about $115 in the second quarter of 2026 before easing to around $88 in the fourth quarter, while Goldman Sachs (GS) cut its second-quarter Brent forecast to $90 and U.S. crude to $87. The latest closure of Hormuz is testing those assumptions.

The closure of the Strait of Hormuz and the breakdown of diplomacy also rippled into digital asset markets. Bitcoin (BTCUSD) fell below $75,000 on April 19 as zero oil tankers passed through the strait and Iran rejected a second round of talks with the United States.

Iranian state media said Tehran would not participate in new negotiations, citing what officials called deception and inconsistency from the U.S. side after earlier talks in Islamabad ended without an agreement. President Trump accused Iran of firing on ships in violation of a ceasefire and threatened to target Iranian infrastructure if no deal is reached.

Analysts cited in reporting noted that rising oil prices and inflation fears have repeatedly pushed some investors toward traditional safe-haven assets rather than crypto, adding to pressure on Bitcoin (BTCUSD) as futures markets prepared to reopen in the wake of the diplomatic breakdown.