Oil prices rose sharply on Wednesday, climbing to nearly $117 a barrel following reports that the U.S. Is preparing to extend its blockade of Iran’s ports, according to the BBC and other news outlets.
Brent crude reached $116.98 a barrel on Wednesday afternoon, the highest price this month, after closing at just over $110 on Tuesday evening. The increase follows reports from the Wall Street Journal that President Donald Trump has instructed aides to prepare for an “extended” blockade in an effort to pressure Iran’s economy.
Iran has stated it will continue to disrupt shipping traffic through the Strait of Hormuz in response to the U.S. Blockade. The Strait of Hormuz, a key waterway for global oil supply, has been effectively closed for weeks due to ongoing conflict, with Iran severely restricting shipping through the strait—which carries approximately one-fifth of the world’s oil and liquid natural gas—in response to U.S. And Israeli strikes that began on February 28.
Earlier this month, Tehran warned that any vessel approaching the strait would be targeted. The U.S. Subsequently announced its forces would intercept or turn back vessels traveling to or from Iranian ports. BBC Verify analysis indicates that at least four vessels tracked from Iranian ports have crossed the U.S. Blockade line.
Fluctuating Prices, Higher Than Pre-Conflict Levels
Despite recent fluctuations, oil prices remain significantly higher than before the conflict. Brent crude dropped to $90 a barrel on April 17 following a ceasefire between Israel and Lebanon, and the U.S. Paused attacks on Iran on April 8. However, the price has been steadily rising over the last 12 days as the U.S. Continued its blockade.
According to Bloomberg, the Trump administration is digging in on the naval blockade, signaling a continued hardline stance against Iran. The Wall Street Journal reported that Trump’s directive aims to further cripple Iran’s economy through the extended blockade.
Reuters reported that Brent crude hit a one-month high on Wednesday amid concerns over prolonged disruption to traffic through the Strait of Hormuz. The ongoing tensions and potential for further escalation continue to contribute to market volatility.