Oil price jumps to $115 after reports of 'extended' Iran blockade

April 29, 2026

Oil prices have surged significantly amid an escalating U.S. blockade targeting Iran's maritime commerce, with Brent crude reaching approximately $115 per barrel before settling slightly lower. President Trump has directed his administration to maintain this naval blockade as a strategy to pressure Iran economically, choosing this approach over resuming military strikes or withdrawing from the confrontation entirely. Iran has retaliated by severely limiting passage through the Strait of Hormuz, a critical waterway that typically handles roughly one-fifth of global oil and liquified natural gas shipments.

Who is affected

Iran (economy and oil exports targeted)
U.S. President Donald Trump and his administration
Iranian officials
Global oil consumers (facing higher prices)
Investors and financial markets (European and Asian stock markets)
Vessels and shipping companies attempting to transit the Strait of Hormuz
Israel (mentioned as participant in strikes)
Lebanon (ceasefire mentioned)
The World Bank (issuing forecasts)
The U.S. Federal Reserve (interest rate decisions being monitored)

What action is being taken

The U.S. is conducting an ongoing blockade of Iran's ports
U.S. forces are intercepting or turning back vessels traveling to or from Iranian ports
Iran is disrupting traffic and severely restricting shipping through the Strait of Hormuz
Iran is using alternative trade routes to withstand the blockade
Trump is urging Iran to sign a deal
At least four vessels tracked from Iranian ports are crossing the U.S. blockade line

Why it matters

The conflict matters because the Strait of Hormuz is a critical chokepoint for global energy supplies, carrying about one-fifth of the world's oil and liquid natural gas. The blockade and restrictions are causing oil prices to remain significantly elevated above pre-conflict levels, creating economic pressure worldwide through higher energy costs. The situation threatens global economic stability, with the World Bank forecasting that energy prices could surge by 24% in 2026 to their highest levels since Russia's invasion of Ukraine. Financial markets are experiencing volatility as investors grapple with uncertainty about whether a resolution will be achieved quickly or whether the disruptions will be prolonged.

What's next

Trump has instructed aides to prepare for an extended blockade of Iran's ports
The U.S. Federal Reserve's latest interest rate decision is awaited
The World Bank forecasts are contingent on the most acute disruptions ending in May

Read full article from source: BBC