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US Crude Rises 2.3% as Hormuz Blockade Persists

5/12/2026

49 7 Full Breakdown

Summary

Story summary

United States crude futures rose 2.3% to $97.64 a barrel in early New York trading.
Strait of Hormuz remains effectively blocked, constraining roughly one-fifth of global oil and LNG shipments.
Investors use the “Nacho” (Not a chance Hormuz opens) narrative coined by Bloomberg columnist Javier Blas to bet on prolonged gridlock.
U.S. Secretary of State Marco Rubio said the outlook stays bleak, noting that each week of closure raises market risk.

History

Historical Context

In October 1973 OAPEC, led by Saudi Arabia’s King Faisal, cut output by 5 million barrels per day and announced an oil embargo that drove world crude from $3 to $12 per barrel—a four-fold jump. The shock forced Western nations to build strategic reserves and diversify supply. Today, the Strait of Hormuz blockage revives those 1973-era fears of chokepoint-induced market panic.

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Story summary

United States crude futures rose 2.3% to $97.64 a barrel in early New York trading.
Strait of Hormuz remains effectively blocked, constraining roughly one-fifth of global oil and LNG shipments.
Investors use the “Nacho” (Not a chance Hormuz opens) narrative coined by Bloomberg columnist Javier Blas to bet on prolonged gridlock.
U.S. Secretary of State Marco Rubio said the outlook stays bleak, noting that each week of closure raises market risk.

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