Oil surges 7% as US plans prolonged Iran blockade, pushing Brent above $119

WTI Crude continues to trade at a premium to Brent as Trump deadline on Iran nears


Oil prices extended their rally on Wednesday after reports that the US is preparing for an “extended” blockade of Iran, escalating fears over global supply disruptions. US West Texas Intermediate futures jumped around 7% to trade above $107 per barrel, while Brent crude surged nearly 7% to cross $119 a barrel, its highest level in recent weeks.

According to The Wall Street Journal, citing US officials, President Donald Trump has instructed aides to prepare for a prolonged blockade of Iran. Separately, Axios reported that Trump rejected Iran’s proposal to reopen the Strait of Hormuz and indicated that the US naval blockade will remain until a nuclear deal is reached.

Iran, meanwhile, has said it will continue disrupting traffic through the vital shipping route.

The Strait of Hormuz—through which about a fifth of global oil and LNG shipments pass—has already seen severe disruptions amid ongoing conflict, adding to market volatility. Investors are also closely watching the US Federal Reserve, which is concluding its April policy meeting, for any signals on inflation pressures driven by rising energy costs.

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