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Iran Offers Hormuz Reopen, Brent Climbs 3% to $111

4/28/2026

45 6 Full Breakdown

Summary

Araghchi Reopens Strait

Iranian Foreign Minister Abbas Araghchi offered to reopen the Strait of Hormuz if nuclear talks are deferred.
Brent crude rose 3 percent to $111.49 per barrel on 2026-04-28.
Only eight vessels crossed the strait on Sunday, down from 19 the day before, versus 129 daily vessels before the war (United Nations Conference on Trade and Development (UNCTAD)).
Goldman Sachs estimates the blockade cut oil production by 14.5 million barrels per day.

Summary

Fertiliser Prices Surge

Around 35% of global urea transits the Strait of Hormuz, a high-risk corridor.
Fertiliser prices rose 25% in a month, prompting a FAO warning of a 15%-20% rise by midsummer.
U.S. farmers face record urea costs, leaving many unable to secure fertiliser.
Africa, importing 80% of its fertiliser, sees prices up 15%-40% and reserves fall to about 30 days, while China and Spain, early renewable investors, absorb the shock better.

History

Historical Context

During the October 1973 Arab oil embargo, OAPEC members led by Saudi Arabia and Iran cut Gulf shipments, slashing exports by up to 70% and driving the price of a barrel from $3 to $12. The shock spurred Western energy-security institutions and lasting price volatility. Iran’s 2026 proposal to reopen the Strait of Hormuz revives that same leverage, threatening 35 % of global urea supplies.

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Araghchi Reopens Strait

Iranian Foreign Minister Abbas Araghchi offered to reopen the Strait of Hormuz if nuclear talks are deferred.
Brent crude rose 3 percent to $111.49 per barrel on 2026-04-28.
Only eight vessels crossed the strait on Sunday, down from 19 the day before, versus 129 daily vessels before the war (United Nations Conference on Trade and Development (UNCTAD)).
Goldman Sachs estimates the blockade cut oil production by 14.5 million barrels per day.

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