Finance
Oil Prices Jump 6% to Above $100 a Barrel on US Blockade of Iran
Published by Global Banking & Finance Review®
Posted on April 13, 2026
4 min readLast updated: April 13, 2026
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Oil prices surged over 6% on April 13, 2026, topping $100 a barrel after the U.S. military announced a blockade of ships leaving Iran, raising fears of renewed supply disruptions amid failed peace talks.
Oil Prices Surge Above $100 as US Blockades Iranian Ports, Raising Supply Fears
Market Reactions and Global Economic Impact
By Scott DiSavino
Oil Price Movements Following US Blockade Announcement
NEW YORK, April 13 (Reuters) - Oil prices jumped about 6% to more than $100 a barrel on Monday after the U.S. military said it will blockade ships leaving Iran's ports nL6N40V09S, while Tehran threatened to retaliate against its Gulf neighbours' ports, raising fears of more energy supply disruptions after weekend peace talks broke down.
Brent futures were up $5.76, or 6.1%, to $100.96 a barrel at 11:15 a.m. EDT (1515 GMT), while U.S. West Texas Intermediate (WTI) crude rose $5.69, or 5.9%, to $102.26.
Prices for physical crude barrels for immediate delivery nL6N40W0KB to Europe were trading even higher, with some grades already at record highs of about $150 a barrel.
Analyst Insights on Market Convergence
If U.S. President Donald Trump "does indeed back his blockade threat with actual boats, a convergence between the paper and physical markets may soon come," said Helima Croft, an analyst at RBC Capital Markets.
Impact on Shipping and Regional Oil Flows
Two Iranian-linked tankers nL1N40W056 exited the Gulf on Monday as other vessels began avoiding the Strait of Hormuz. The strait handles about 20% of global oil and liquefied natural gas flows.
Saudi Arabia's Response and Oil Supply Adjustments
Saudi Arabia said it restored full oil pumping capacity through the East-West pipeline nL1N40S100 to about 7 million barrels per day (bpd) after damage from Iranian attacks. The kingdom, however, said nL1N40W081crude oil sales to China nL1N40W081 are set to fall in May as the war drives up prices and disrupts shipping.
Economic and Policy Responses to High Oil Prices
OPEC's Demand Forecast and Price Moderation
HIGH PRICES HURT ENERGY DEMAND
The Organization of the Petroleum Exporting Countries (OPEC) nL6N40W0P6 lowered its forecast for world oil demand in the second quarter by 500,000 barrels per day, helping to pare earlier crude futures price gains.
Earlier in the trading session, Brent futures were up more than $8 a barrel and WTI was up more than $9.
Regional Economic Concerns
India's Inflation and Monsoon Outlook
India nL1N40W0BS said it was likely to see below-average monsoon rains for the first time in three years in 2026, stoking concerns about farm output and growth in Asia's third-largest economy as it battles inflation driven by the war.
European Inflation and Central Bank Policies
Inflation is also a concern in Europe where European Central Bank nL8N40W0XH Vice President Luis de Guindos said any ECB interest rate rise nL6N40W0LA will depend on how a war-fuelled surge in the cost of crude oil and some chemicals impacts other prices.
Central banks like the ECB use interest rates to control inflation. Higher rates boost consumer costs and can slow economic growth and demand for oil.
EU and National Responses to Energy Costs
European Union nL8N40W0Q2 Commission President Ursula von der Leyen said member states must coordinate on energy prices amid a 22 billion euro ($25.70 billion) increase in fossil fuel bills since the start of the war.
The head of Italian energy group Eni nL8N40W0P9 suggested the EU reconsider its plans to progressively ban imports of Russian gas from the start of next year.
In Germany nL6N40W0EC, the coalition government agreed to give consumers and businesses about 1.6 billion euros ($1.9 billion) of fuel price relief, ending a dispute over how to respond to the recent oil price surge.
Japan's Economic Outlook Amid Market Uncertainty
Bank of Japan nL1N40W05N Governor Kazuo Ueda said uncertainty over the Middle East conflict was keeping markets unstable and could hurt factory output, signalling the central bank's escalating alarm over the economic hit from the war.
(Additional reporting by Scott DiSavino in New York, Ahmad Ghaddar in London and Florence Tan and Jeslyn Lerh in Singapore; Editing by Kirsten Donovan, David Goodman and Paul Simao)
Key Takeaways
- •Brent rose approximately 6.1% to about $100.96, WTI climbed nearly 5.9% to $102.26 as the U.S. set to enforce a blockade of Iranian ports starting Monday (apnews.com).
- •The Strait of Hormuz—through which roughly 20% of global oil and LNG passes—is effectively closed, marking one of the worst energy chokepoint crises ever and pushing prices higher (apnews.com).
- •Analysts warn a prolonged blockade could drive oil as high as $150 per barrel, especially if disruptions spread to other chokepoints like Bab al‑Mandeb; the IEA called the situation the greatest global energy security challenge in history (aljazeera.com).
References
Frequently Asked Questions about Oil prices jump 6% to above $100 a barrel on US blockade of Iran
1Why did oil prices jump above $100 per barrel?
Oil prices surged over 6% after the US military announced a blockade of ships leaving Iran's ports, raising fears of major supply disruptions.
2How did the US blockade of Iran affect global energy markets?
The blockade led to higher oil prices and caused physical crude prices in Europe to reach record highs due to supply concerns.
3What are the implications for oil demand and inflation?
High oil prices are reducing energy demand, with OPEC lowering its forecast, and are fueling inflation concerns in multiple global regions.
4What measures are governments taking in response to rising oil prices?
European countries are providing consumer fuel relief and urging coordination on energy policies to manage rising costs and inflation.
5Why is the Strait of Hormuz significant in this situation?
The Strait of Hormuz is a major route handling about 20% of global oil flows, and disruptions here impact worldwide energy supply and prices.
