Finance
Oil Prices Rebound 7% as Strait of Hormuz Is Closed Again
Published by Global Banking & Finance Review®
Posted on April 19, 2026
2 min readLast updated: April 19, 2026
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Oil prices surged over 7% on April 20 as the Strait of Hormuz was abruptly closed again amid U.S.–Iran ceasefire tensions, reversing a sharp drop earlier in the week. Brent rose to $96.94 and WTI to $89.92 amid mounting geopolitical risks and constrained supply.
Oil claws back losses as Strait of Hormuz is closed again
Oil Price Volatility Amid Strait of Hormuz Closure
By Florence Tan
Market Reaction and Price Movements
SINGAPORE, April 20 (Reuters) - Oil prices rebounded more than 6% on Monday after tumbling more than 9% on Friday on news the Strait of Hormuz is closed again after both the U.S. and Iran said the other party had violated their ceasefire deal by attacking ships over the weekend.
Brent crude futures jumped $6.11, or 6.76%, to $96.49 a barrel by 2327 GMT and U.S. West Texas Intermediate was at $90.38 a barrel, up $6.53, or 7.79%.
Geopolitical Tensions and Blockades
The U.S. military had seized an Iranian cargo ship that tried to run its blockade, U.S. President Donald Trump said on Sunday, while Iran said it would not participate in a second round of peace talks despite Trump's threat of renewed airstrikes.
The United States has maintained a blockade of Iranian ports, while Iran has lifted and then reimposed its own blockade of the Strait, which handled roughly one-fifth of the world's oil supply before the war began almost two months ago.
Expert Commentary on Oil Market Dynamics
"Oil markets continue to gyrate in response to oscillating social media posts by the U.S. and Iran, rather than the realities on the ground which remain challenging for oil flows to resume in a rapid fashion," Saul Kavonic, MST Marquee's head of research, said.
Recent Developments and Shipping Activity
Both contracts posted on Friday their largest daily declines since April 18 after Iran said passage for all commercial vessels through the Strait of Hormuz was open for the remaining ceasefire period and Trump said Iran had agreed to never close the strait again.
"The announcement of the Strait opening proved premature," Kavonic said.
"Ship owners will be twice shy about heading towards the Strait again without receiving much more confidence that any announced passage is real."
Shipping Data and Trade Impact
More than 20 ships passed the strait on Saturday carrying oil, liquefied petroleum gas, metals and fertilizers, Kpler data showed, the highest number of vessels crossing the waterway since March 1.
(Reporting by Florence Tan; Editing by Lisa Shumaker and Lincoln Feast.)
Key Takeaways
- •The renewed closure of the Strait of Hormuz, a chokepoint for about one‑fifth of global oil flows, triggered a significant risk premium and rapid price rally. (en.wikipedia.org)
- •Just days earlier, oil had plunged after Iran and the U.S. announced the strait would be open under a ceasefire; the swing highlights extreme market sensitivity to transit uncertainty. (en.wikipedia.org)
- •According to the U.S. Energy Information Administration, production shut‑ins across Gulf states reached over 9 million barrels per day in April, underpinning elevated crude price forecasts through mid‑year. (eia.gov)
References
Frequently Asked Questions about Oil prices rebound 7% as Strait of Hormuz is closed again
1Why did oil prices rebound by more than 7%?
Oil prices rebounded due to the closure of the Strait of Hormuz following ceasefire violations between the U.S. and Iran.
2Which crude oil benchmarks saw price increases?
Brent crude futures and U.S. West Texas Intermediate both saw significant price increases.
3What caused the Strait of Hormuz to close again?
The Strait of Hormuz was closed after both the U.S. and Iran accused each other of violating a ceasefire by attacking ships.
4How much did Brent crude rise on Monday?
Brent crude futures jumped $6.56, or 7.26%, to $96.94 a barrel.
5Who reported on this oil price increase?
The report was written by Florence Tan and edited by Lisa Shumaker.
