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Trump Signals Months-Long Iran Blockade With Oil at Four-Year Highs

The squeeze on the Hormuz shipping lane is tightening supply, feeding inflation risks.

Overview

  • Brent traded near $120 to $126 a barrel and WTI around $108 to $110 after Wednesday’s warning that the U.S. naval blockade of Iranian ports could last months, keeping prices at four‑year highs.
  • U.S. Central Command said it has redirected its 42nd commercial vessel under the blockade and estimated 41 tankers holding 69 million barrels of Iranian oil are currently blocked from sale.
  • At a White House meeting Tuesday, senior officials and energy traders discussed how to sustain the blockade for months while trying to limit the hit to U.S. consumers, with Chevron’s CEO among attendees.
  • The Federal Reserve left rates at 3.5% to 3.75% in a rare split vote and cited Middle East uncertainty as energy costs rise, reinforcing concerns about price pressure and slowing prospects for rate cuts.
  • Talks remain stuck after Iran’s latest proposal to reopen the Strait of Hormuz drew U.S. skepticism, and Axios reported President Trump is expected to receive a Thursday briefing on potential military options.