Story perspectives

Iran Closes Hormuz, Brent Hits $106, Threatens $190 Oil

4/25/2026

Summary

Iran Closes Strait

Iran closed the Strait of Hormuz on Feb. 28, keeping it shut.
The closure pushed Brent crude to about $106 a barrel and cut daily oil flow by 13 million barrels, creating a major energy-security threat.
The United States and Iran seized cargo ships and imposed naval blockades, halting commercial traffic.
Economist Paul Krugman warned a three-month shutdown could lift oil to $190 per barrel and raise inflation to 7.7 %.

Summary

U.S. Seizes Tanker

The Office of Foreign Assets Control (OFAC) issued License 134 on March 12 2026 for Russian crude, then License 134A adding Iran restrictions, and License 134B extending exemption to May 16 2026, permitting offloading, docking and anchoring.
Iranian oil exemption ended on April 19 2026, and Trump administration has not provided an extension.
U.S. forces seized the Guyana-flagged tanker Majestic X heading to China after Iran put the 30-year-old carrier Nasha in storage to relieve Kharg Island, which will fill in 12-13 days.

History

Historical Context

In October 1973 OAPEC, led by Saudi King Faisal, imposed an oil embargo on the United States and its allies to protest American support for Israel, cutting shipments through the Strait of Hormuz and driving crude from $3 to $12 per barrel—a 300 % surge. The 1973 shock showed how chokepoints can weaponize oil, a lesson echoed by Iran’s 2026 Hormuz closure and U.S. OFAC licensing.

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Iran Closes Strait

Iran closed the Strait of Hormuz on Feb. 28, keeping it shut.
The closure pushed Brent crude to about $106 a barrel and cut daily oil flow by 13 million barrels, creating a major energy-security threat.
The United States and Iran seized cargo ships and imposed naval blockades, halting commercial traffic.
Economist Paul Krugman warned a three-month shutdown could lift oil to $190 per barrel and raise inflation to 7.7 %.

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