UAE quits OPEC: What that means for the Gulf, energy markets and beyond

Oil prices surged on Sunday after the U.S. announced it would begin blockading Iranian ports on Monday. U.S. crude rose 8% to $104.24 a barrel, and Brent crude increased 7% to $102.29. The blockade, enforced by U.S. Central Command, aims to restrict access to all Iranian ports on the Persian Gulf and Gulf of Oman but will allow passage through the Strait of Hormuz for ships traveling between non-Iranian ports. The Strait of Hormuz is a crucial waterway for global oil shipping, with approximately a fifth of the world's traded oil passing through it daily. Analysts suggest the blockade could further tighten oil markets and potentially influence ongoing negotiations with Iran, though concerns exist about the potential for increased economic strain worldwide.

Amid a fragile ceasefire between the US and Iran, three oil supertankers exited the Strait of Hormuz on Saturday, according to shipping data. The vessels, the Liberia-flagged Serifos and the China-flagged Cospearl Lake and He Rong Hai, are each capable of carrying 2 million barrels of oil. The Strait of Hormuz is a critical chokepoint for global oil and liquefied natural gas shipments. The Serifos, chartered by Thai state-owned PTT and carrying crude from Saudi Arabia and the UAE, is expected to arrive in Malaysia on April 21. The Cospearl Lake, laden with Iraqi oil, is headed to China, while another tanker, Ocean Thunder, chartered by a unit of Petronas, transited the waterway last week.