Oil Prices Surge as Strait of Hormuz Tensions Rattle Markets

20/04/2026

Oil Prices Surge as Strait of Hormuz Tensions Rattle Markets

NEW YORK (AP), Apr 20: Oil prices jumped sharply in early trading as renewed tensions surrounding the Strait of Hormuz unsettled global energy markets.

U.S. crude rose 6.4% to $87.88 per barrel after trading resumed on the Chicago Mercantile Exchange. Meanwhile, Brent crude—the international benchmark—climbed 6.5% to $96.25 per barrel.

The rally follows more than two days of volatile sentiment tied to developments in the strategic shipping lane. Hopes that the situation would stabilize were quickly reversed, triggering a sharp market reaction.

Sunday’s gains partially offset steep losses recorded on Friday, when oil prices plunged over 9% after Iran’s foreign minister signaled that the strait had reopened to commercial tanker traffic.

The Strait of Hormuz is one of the world’s most critical oil transit routes, and any disruption or uncertainty in the passage typically has an immediate impact on global crude prices.

Also, European natural gas prices jumped sharply after Iran once again closed the Strait of Hormuz, intensifying fears of disruptions to energy flows from the Gulf, according to a report by Bloomberg.

Benchmark gas futures rose 11% in early Asian trading on Monday, reaching €43 per megawatt-hour. The surge underscores growing market anxiety over supply risks, as the waterway remains a critical route for global oil and liquefied natural gas shipments.