Oil prices surge after Trump threatens to block passage through Strait of Hormuz

Market Reaction

Brent crude, the international benchmark, surged 8% to approximately $102 per barrel. US crude (WTI) saw a similar spike, climbing 8% to settle at $104. The sudden jump reflects growing investor anxiety over the potential for a total shutdown of the world’s most important oil transit point.

"We’re not going to let Iran make money on selling oil to people that they like and not people that they don’t like," Trump said during an appearance on Fox News’ “Sunday Morning Futures.” "It’s going to be all or none."

High Stakes at the Strait

The Strait of Hormuz is a critical chokepoint, handling roughly 20% of the world's total oil consumption. The threat of a naval blockade comes as peace negotiations with Tehran reportedly hit a standstill.

According to data from analytics firm Kpler, Iran has continued to export an average of 1.85 million barrels of crude a day through March, despite ongoing tensions. Analysts warn that any physical disruption to this flow could lead to:

• Persistent inflation: Higher energy costs will keep global shipping and manufacturing prices elevated.

• Gas price volatility: In the US, the average price of a gallon of gas reached $4.12 on Sunday, up 38% since the beginning of the conflict.

• Stock market decline: Major indices fell in late-week trading as uncertainty over the Middle East deepened.

Economic Fallout

"It could be a long time from now before the war ends and oil prices come down," Karen Young, a senior fellow at the Middle East Institute, told CNN.

The International Energy Agency (IEA) has previously described the current energy crisis as more serious than the shocks of 1973 and 1979 combined. With the "all or none" approach now on the table, the global economy faces a precarious path through the remainder of 2026.

This is a developing story and will be updated.