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Oil Tops $117 as U.S. Prepares Extended Iran Port Blockade

The move points to a longer shutdown of the Hormuz oil corridor that is draining already thin global inventories.

Overview

  • Brent crude, which climbed to about $115–$117 Wednesday, rose after a Wall Street Journal report said the U.S. will prepare for a prolonged blockade of Iranian ports.
  • President Trump warned Iran to “get smart soon” in a social media post as negotiations to end the war and reopen the Strait of Hormuz stalled and traders braced for extended disruption.
  • The United Arab Emirates said Tuesday it will leave OPEC on May 1, a break that analysts say has little near‑term effect while Hormuz stays restricted but could change supply options once flows resume.
  • JPMorgan estimates war‑related disruptions have removed about 13.7 million barrels per day from supply as governments tapped strategic reserves, including a record 400 million‑barrel IEA‑led release, with Goldman Sachs warning stocks could hit record lows.
  • The World Bank projects a 24% jump in 2026 energy prices, warning of higher inflation and food risks as the EU counts heavy daily energy costs and Pakistan reports a weekly oil bill that has surged to $800 million.