Oil price jumps above $117 after reports of 'extended' Iran blockade

Malaysia's busiest container port has begun refusing Middle East-bound cargo unless shipping lines can guarantee prompt pickup. This move is a sign that the Gulf crisis, which began with a US and Israeli blockade on Iran in late February, is affecting everyday trade across Asia. The Strait of Hormuz, a critical waterway for international shipping, has been largely shut since then. Longer transit times, missed sailings, and higher insurance premiums are now being felt across the region's logistics chain. Wine, spirits, and other time-sensitive goods are among the affected items. As the crisis continues to disrupt global trade, analysts predict that it will eventually lead to price increases on shop shelves and restaurant tables.

In March, China's trade with Iran and Gulf states experienced a significant decline due to disruptions in the Strait of Hormuz. Chinese customs data revealed a 48% year-on-year drop in imports from Iran and a 90% decrease in exports to the country. Trade with eight Persian Gulf economies also fell, with exports down 57% and imports decreasing by nearly 33%. The Strait of Hormuz, a crucial waterway for global oil transport, faced restrictions, leading to a 25% year-on-year reduction in China's oil imports from Gulf countries. The US-Israeli war on Iran is cited as the reason for the restrictions.

Tensions have escalated in the Strait of Hormuz after Iran closed the waterway on April 18, trapping hundreds of commercial tankers and thousands of sailors. The closure followed reports of Iranian gunboats firing on ships, including the motor tanker Sanmar Herald, and a projectile striking a container vessel. The U.S. Navy has implemented a blockade impacting Iranian ports, while Iran's Revolutionary Guard has reaffirmed control over the Strait. The Strait of Hormuz is a critical chokepoint for global energy markets, with roughly one-fifth of the world’s oil supply passing through it. The situation has prompted international concern, with Hapag-Lloyd activating a crisis team and the Indian government expressing deep concern.

Oil prices surged on Sunday, April 19, 2026, due to a U.S.-Iran standoff in the Strait of Hormuz, a critical waterway for global energy supplies. U.S. crude rose 6.4% to $87.88 per barrel, while Brent crude increased 6.5% to $96.25. The price jump followed Iran's reversal of its decision to reopen the strait after President Trump maintained a U.S. Navy blockade of Iranian ports, and the Iranian Revolutionary Guard fired on vessels. The conflict, part of an ongoing US-Israeli war against Iran, has triggered a global energy crisis, impacting countries reliant on Middle Eastern oil imports and causing rising fuel prices worldwide. The Energy Secretary predicts that lower gas prices for U.S. consumers may not return until the following year.