Oil Prices Surge as Trump Signals Prolonged US Naval Blockade of Iran

Oil prices climbed sharply to their highest levels in more than four years after US President Donald Trump said a naval blockade of Iranian ports could remain in place for months, raising fears of prolonged disruption to global energy supplies.

Speaking after a meeting with oil industry executives, Trump said the blockade was proving more effective than direct military action in pressuring Tehran. He indicated that the United States was prepared to maintain the operation for an extended period as part of its strategy to curb Iran’s oil exports and weaken its economy.

The comments sent energy markets higher. Brent crude for June delivery rose more than 7% at one stage, reaching $126.41 a barrel, its highest level since 2022, before easing slightly. US benchmark West Texas Intermediate also gained, climbing to around $110.31 a barrel before trimming some of its earlier advances.

The rally reflects mounting concerns over supply from the Middle East, a region that remains central to global oil production. The blockade comes amid heightened tensions between Washington and Tehran, following recent military and diplomatic confrontations.

Iran has responded by tightening its grip on the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world’s oil and liquefied natural gas supplies pass. Any sustained disruption in the strait could have significant implications for global trade, shipping costs and energy prices.

Iranian President Masoud Pezeshkian condemned the US action on Thursday, calling the blockade illegal and warning that it would further destabilise the Gulf region.

In a statement, Pezeshkian said attempts to impose maritime restrictions violated international law and would fail to achieve their objectives. He argued that such measures would increase tensions rather than improve regional security.

The standoff has intensified uncertainty in global markets, with traders closely monitoring developments in the Gulf. Analysts say the longer the blockade remains in place, the greater the risk of supply shortages and further price increases.

Trump has suggested that economic pressure remains the preferred tool for dealing with Iran, especially as diplomatic efforts continue. Tehran, however, has insisted that any agreement must include an end to the blockade before substantive negotiations can move forward.

The latest surge in oil prices is already adding to inflation concerns worldwide, particularly in countries heavily dependent on imported energy. Higher crude prices are expected to feed through to fuel, transport and manufacturing costs in the coming weeks.

With neither side showing signs of backing down, markets are bracing for continued volatility as the confrontation in the Gulf enters a new and potentially prolonged phase.