OIL
Oil Surges, Stocks Fall As Trump To Blockade Strait Of Hormuz” — reflects the market shock that hit late Sunday, April 13, 2026, after President Donald Trump announced a U.S. Navy blockade of the strait. The piece aligns with reports from multiple outlets that tracked crude prices and equities reacting in real time to the announcement.
Trump said the blockade would begin at 10 a.m. ET on Monday, April 14, targeting “any and all ships trying to enter, or leave, the Strait of Hormuz”. U.S. Central Command confirmed the start time and said it would apply to “all maritime traffic entering and exiting Iranian ports,” enforced “impartially against vessels of all nations” headed to or from Iran. Centcom added that U.S. forces would not impede vessels transiting the strait to or from non-Iranian ports. Trump also ordered the Navy to “seek and interdict every vessel in International Waters that has paid a toll to Iran.
Markets moved instantly. Brent crude futures jumped about 7% to $102 a barrel and WTI futures rose nearly 8% to $104 a barrel in Sunday evening trading. By Monday morning, Brent was up 6.55% at $101.40 and WTI up 6.9% at $103.10. Oil had been around $95 before the announcement. Stock futures sank at the same time: Dow futures fell nearly 500 points, or 1%, while S&P 500 futures dropped 1.1% and Nasdaq 100 futures 1.2%. In Asia Monday, Japan’s Nikkei slipped 0.8% and South Korea’s Kospi lost 1% — both countries rely heavily on Middle East oil — while China’s SSE Composite edged up 0.1% as China continues buying Iranian crude.
The blockade followed failed talks with Iran in Pakistan over the weekend. Trump said “most points were agreed to, but the only point that really mattered, NUCLEAR, was not.” He called the policy “all or nothing,” meaning no country — ally or adversary — could use the strait to move Iranian oil. “We’re not going to let Iran make money on selling oil to people that they like and not people that they don’t like… It’s going to be all or none,” he told Fox News. He compared it to U.S. actions against Venezuela, “but at a higher level.
The Strait of Hormuz is the world’s most critical oil chokepoint. About 20% of global oil supply — roughly 20 million barrels a day — normally transits it, plus a fifth of global LNG. Since U.S. and Israeli strikes on Iran began February 28, flows had already slowed to a trickle, mostly Iranian tankers. Kpler data showed just 15 Iranian vessels left Kharg Island April 1-12, with only 12 non-Iranian tankers transiting in that period. Iran has also been charging tolls up to $2 million per supertanker for passage, which Trump labeled “extortion”.
Analysts warn the blockade raises the risk of direct confrontation. Kyle Rodda of http://Capital.com said the “stage is set for a hot war” if the U.S. sends forces to clear mines and Iran strikes U.S. assets, or if Iran attacks the blockade to reassert control. Iran’s IRGC said any military vessels approaching the strait would be considered a ceasefire breach and “dealt with harshly and decisively”. Former Obama advisor Dennis Ross said Iran could retaliate by targeting Gulf oil facilities in Saudi Arabia, the UAE, or Kuwait to pressure the U.S. to ease the blockade.
Shipping is already reacting. Oil tankers began steering clear of Hormuz ahead of the 10 a.m. deadline, with only a handful of vessels — including Pakistan-flagged Shalamar and Khairpur — transiting Sunday to load in the UAE and Kuwait. Centcom said additional guidance would go to commercial mariners before the blockade started. The UK ruled out joining the naval operation Sunday night, while Australia said its navy is “ready as it ever has been” if asked, but no request had come yet.
The blockade marks Trump’s latest “escalate to de-escalate” move in a six-week conflict. After a two-week ceasefire earlier in April sent oil down to $94 and stocks rallying, the collapse of talks and new blockade reversed those gains. Trump said the U.S. would also sweep for mines and warned, “Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!” With 20% of global supply at stake, markets are now pricing in a longer, more volatile conflict rather than a quick resolution.
