LONDON, April 24, 2026, 09:42 BST
- Brent and WTI were both on track for sharp weekly gains, with the Hormuz disruption continuing to fuel supply concerns in crude.
- The strait acts as a key global chokepoint. With few alternate routes available, any shipping disruption there tends to ripple through worldwide prices.
- U.S. crude inventories climbed, while gasoline and diesel supplies dropped—leaving fuel prices in the spotlight.
Oil climbed Friday, Brent topping $106 a barrel, U.S. West Texas Intermediate hanging just below $97, as renewed military flare-ups near the Strait of Hormuz kept supply risks very much in play for both U.S. and global markets. Brent headed for a weekly jump north of 17%, WTI more than 15%—marking one of the biggest one-week spikes since the fighting started.
Hormuz isn’t some alternative route; it’s the main artery. According to the International Energy Agency, roughly 20 million barrels a day of crude and oil products passed through the strait in 2025—about a quarter of the global seaborne oil trade. Only scant pipeline capacity exists to get around it.
U.S. consumers are feeling the squeeze at a tricky moment for fuel supplies. According to the Energy Information Administration, commercial crude inventories grew by 1.9 million barrels during the week ending April 17. But gasoline took a hit, dropping 4.6 million barrels, and distillate fuel stocks—which include diesel and heating oil—fell 3.4 million barrels. Distillates now sit roughly 8% under their five-year average.
The spark: shipping tensions ratcheted up again. President Donald Trump told the U.S. military to “shoot and kill” Iranian small boats using mines in the strait, according to AP. Iran’s Revolutionary Guard had just taken control of several vessels, and the U.S. seized a tanker linked to Iranian oil smuggling. No word on fresh talks between Washington and Tehran. AP News
Crude wasn’t the only thing rattling traders. “Not going to be a linear de-escalation,” warned Vishnu Varathan, Mizuho’s head of macro strategy for Asia-Pacific, referring to violence, oil prices and volatility. Jane Foley at Rabobank flagged another concern: persistently high energy costs might make central banks think twice before moving forward with more rate hikes. Reuters
The impact has shown up quickly in U.S. trading. Wall Street stocks lost ground Thursday as oil rallied, with WTI closing at $95.85, up 3.11%, and Brent gaining 3.10% to finish at $105.07. Scott Ladner, chief investment officer at Horizon, noted that while headline-driven swings haven’t lasted as long lately, they’re still capable of shaking markets for a day or two.
There’s a double edge here. Goldman Sachs pointed out that Gulf oil flows might bounce back largely within a few months if Hormuz comes back online. Still, the bank put April’s shuttered Gulf crude supply at 14.5 million barrels a day, and flagged that tankers and well performance issues could hamper the pace of any return.
At this point, oil prices hinge less on any single U.S. inventory figure and more on the next shipping update. Should Hormuz reopen in earnest, the recent rally could face an immediate challenge. On the other hand, if attacks resume, negotiations stall, or mine-clearing runs into new setbacks, traders will keep shelling out for protection against supply crunches.
