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Iran Closes Hormuz Strait, Oil Prices Surge

4/28/2026

48 6 Full Breakdown

Summary

Iran Closes Strait

Iran closed the Strait of Hormuz, lifting Brent to $107.66 and WTI to $96.47 per barrel.
The blockage halted about 20% of world oil flow, cutting daily ship transits to near zero and dropping supply by at least 10%, equal to hundreds of millions of barrels.
The International Energy Agency called the event one of biggest supply shocks on record, with U.S. blockade leaving only eight ships crossing the strait.

Summary

Iran Blocks Talks

Masoud Pezeshkian told Shehbaz Sharif that U.S. actions have eroded trust, the Strait of Hormuz will not revert, and Tehran will not negotiate until U.S. naval blockades are lifted.
U.S. President Donald Trump cancelled a U.S. envoy appointment to Islamabad after Iran refused direct talks, citing internal infighting.
AAA reported U.S. gasoline averaged $4.10 per gallon on Sunday, 27% higher since the war began.

History

Historical Context

After the October 1973 OAPEC oil embargo—triggered by the Yom Kippur War and led by Saudi King Faisal—oil exports from Saudi Arabia, the UAE and Kuwait fell by about 5 million barrels per day, sending the price of a barrel from $3 to $12 (a 300 % jump). The shock spurred the 1974 creation of the International Energy Agency and strategic petroleum reserves, shaping response to Iran’s Strait of Hormuz closure.

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Iran Closes Strait

Iran closed the Strait of Hormuz, lifting Brent to $107.66 and WTI to $96.47 per barrel.
The blockage halted about 20% of world oil flow, cutting daily ship transits to near zero and dropping supply by at least 10%, equal to hundreds of millions of barrels.
The International Energy Agency called the event one of biggest supply shocks on record, with U.S. blockade leaving only eight ships crossing the strait.

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