NEW YORK, April 30, 2026 – Global crude oil prices jumped more than 5 percent on Wednesday, April 29, 2026. This sudden increase brought energy costs to their highest point since a recent, fragile ceasefire began between the United States and Iran. The market responded sharply to news reports from major outlets, including The Wall Street Journal and NBC. These reports claimed that U.S. President Donald Trump has instructed his national security team and various energy companies to prepare for a long term naval blockade. This blockade would target Iranian ports and the Strait of Hormuz, which is a narrow waterway used for shipping a large portion of the world's oil.
Market data showed a significant shift during trading on Wednesday. According to reports from AFP and BSS, Brent crude for June delivery rose by 5.16 percent. This brought the price to $117 per barrel around 13:35 GMT. At the same time, West Texas Intermediate (WTI) rose by 4.85 percent. It reached a price of $104.78. Xinhua News Agency confirmed this price surge. Their reporting noted that the blockade is meant to increase economic pressure on the Iranian government. This decision follows a move by the United States to reject recent proposals from Iran. U.S. officials claimed these proposals did not include enough guarantees regarding Iran's nuclear program.
The reports indicate that the U.S. government is expanding its "Economic Fury" campaign. Strategic analysis from Atalayar mentioned that NBC reported on the specific reasons for the failed diplomacy. Iran had reportedly offered a proposal to keep the Strait of Hormuz open. In exchange, they wanted the U.S. to end the naval blockade. However, the proposal sought to postpone all nuclear negotiations for an indefinite period. The U.S. government rejected this offer. This rejection led to the current expectations of a longer blockade.
As prices fluctuated, U.S. Treasury Secretary Scott Bessent spoke about the government's plan for the markets. He stated that the United States will not intervene directly in the oil futures markets (financial markets where people trade contracts to buy oil at a later date). Instead, Bessent said the government is ready to use "physical intervention" to keep global supplies stable. One part of this plan involves a 400 million barrel release from the Strategic Petroleum Reserve (SPR). The SPR is a large emergency supply of oil kept by the U.S. government.
Additionally, the Treasury Secretary mentioned the potential for "unsanctioning" certain oil supplies. This would involve allowing approximately 260 million barrels of Russian and Iranian oil to enter the market. This specific oil is currently being kept in floating storage, which refers to oil held on large tankers at sea because it cannot be sold under current sanctions. These measures are designed to help balance the global supply if the blockade continues to limit new exports.
The current situation marks a major escalation in economic and naval activity in the region. Since February 2025, the U.S. has placed sanctions on about 1,000 targets related to Iran. The naval blockade and the resulting price surge show the immediate impact of these policy decisions on global energy costs. Traders and energy companies are now watching for further official statements as the U.S. prepares for a potentially long standoff at sea.
Sources
Xinhua News Agency (Published: April 29, 2026, 21:52:46)
Bangladesh Sangbad Sangstha (BSS) / Agence France-Presse (AFP) (Published: April 29, 2026, 20:05)
Atalayar (Published: April 29, 2026)
Fox Business (Published: March 19, 2026; Updated: April 29, 2026)
