NEW YORK CITY, NEW YORK: Oil prices rose sharply in early trading on April 19 after renewed tensions between the United States and Iran disrupted tanker traffic through the Strait of Hormuz, a critical artery for global energy supplies.
U.S. crude climbed 6.4 percent to US$87.90 per barrel shortly after trading resumed on the Chicago Mercantile Exchange, while Brent crude, the international benchmark, rose 5.8 percent to $95.64 per barrel.
The gains followed a volatile stretch for oil markets, with prices swinging sharply in response to shifting signals around access to the strait. On April 17, crude had fallen more than nine percent after Iran said it would fully reopen the waterway to commercial shipping.
That optimism quickly faded. Tehran reversed its decision on April 18 and fired on several vessels after President Donald Trump said a U.S. Navy blockade of Iranian ports would remain in place. The next day, Trump said the United States attacked and seized an Iranian-flagged cargo ship that allegedly attempted to bypass the blockade, prompting Iran’s joint military command to vow retaliation.
The rebound in prices on April 19 erased much of the previous losses and underscored growing uncertainty over when oil shipments from the Middle East might resume normal flows.
The ongoing U.S.-Israeli war against Iran, now in its eighth week, has triggered one of the most severe global energy disruptions in decades. Countries in Asia and Europe that depend heavily on Middle East oil have been hit hardest by supply constraints, while rising fuel costs are increasingly affecting consumers and businesses worldwide.
Asked when gasoline prices in the United States might fall below $3 per gallon again, Energy Secretary Chris Wright suggested relief may not come soon.
“But prices have likely peaked, and they’ll start going down,” Wright told CNN’s “State of the Union”.
Oil markets have remained highly volatile since the conflict began on February 28, when U.S. and Israeli forces attacked Iran, prompting retaliatory strikes across the Middle East. Prices, which were around $70 per barrel before the war, have since surged to as high as $119 per barrel at times, then settled at $82.59 for U.S. crude and $90.38 for Brent on April 17.
Analysts have warned that prolonged disruption in the Strait of Hormuz could drive prices even higher. The narrow waterway handles a significant share of the world’s oil shipments, making it a key pressure point in global energy markets.
A fragile two-week ceasefire between the United States and Iran is due to expire on April 22, raising concerns that tensions could escalate further and delay efforts to stabilize supply.
Even if an agreement is reached to reopen the strait, analysts say a return to normal conditions could take months. Backlogs of stranded tankers, concerns among shipowners about renewed conflict, and damage to energy infrastructure are all expected to slow the recovery of production and shipments.
Fuel prices at the pump remain elevated. The average price of regular gasoline in the United States stood at nearly $4.05 per gallon on April 19, according to the AAA Motor Club Federation. While slightly lower than a week earlier, it remains well above the $2.98 level seen before the conflict began.
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