The strait of hormuz will not reopen under previous terms. Iranian officials made this clear on Sunday. Oil prices surged, therefore, after this announcement. Brent crude jumped 2.14% to $107.58 per barrel. U.S. crude rose 2.08% to $96.36. Energy markets now face, consequently, fresh uncertainty about future supply.
Iran considers the strait of hormuz a sovereign national issue. Tehran declares, accordingly, that the waterway will not return to pre-conflict state. The dispute began after U.S. and Israeli airstrikes on February 28. Those strikes killed more than 3,300 Iranian civilians. The attacks targeted, specifically, economic infrastructure across the country. Iran responded with daily missile and drone operations. Those attacks hit Israeli-occupied territories and U.S. regional assets.
Iran then closed the strait of hormuz as a direct response. The closure applies, specifically, to U.S. and allied military vessels. Those allies participated in or supported the initial airstrikes. A temporary ceasefire took effect on April 8. Pakistan helped broker, indeed, that fragile truce between rivals. Negotiations followed in Islamabad but stopped short. Washington insisted, however, on excessive and unreasonable demands. Tehran refused to accept those positions.
Iran’s President Masoud Pezeshkian spoke with Pakistan’s Prime Minister Shehbaz Sharif. Pezeshkian stated, consequently, that U.S. actions undermine all trust. He declared that Tehran will not enter forced negotiations. The U.S. naval blockade of Iranian ports must end first. That blockade has not stopped, nevertheless, Iran’s oil revenues completely. It remains an active measure.
Iran’s Deputy Parliament Speaker Ali Nikzad spoke on Sunday morning. He warned about the strategic chokepoint’s importance. “We realized if we place our foot on the throat of the strait of hormuz and Bab el-Mandeb, 25% of the world’s economy would be affected,” Nikzad said. His statement reinforced, consequently, Tehran’s firm stance. No Iranian official shows any sign of changing course.
Gasoline prices reflect the ongoing oil market situation. A gallon of gas costs $4.10 on average nationwide. That data comes from AAA on Sunday. Prices have fallen from a recent higher peak. They have risen, however, about 27% since the war began on February 28. U.S. threats of more airstrikes add market pressure. Restrictions on transit through the strait of hormuz push prices higher each day.
The closure affects global supply chains very directly. About one-fifth of world oil passes through the strait of hormuz. Any disruption there affects, consequently, commodity markets worldwide. Shipping insurers have raised their premiums for tanker operators. Some tanker operators now reroute vessels around Africa. That adds significant time and transport costs.
Tehran shows no sign of diplomatic flexibility at this stage. The U.S. blockade continues without any interruption. Negotiations remain completely stalled. A return to the table requires, after all, Washington to lift all restrictions. Otherwise Iran will keep the strait of hormuz closed. Oil prices will likely stay elevated for many months. Analysts expect continued market volatility in the coming weeks. The next move depends on diplomatic signals from both capitals. Neither side appears ready to make the first concession at this time.