LAGOS — Global oil prices jumped more than 2% on Tuesday, as the effective closure of the Strait of Hormuz entered its third week. The rally was fueled by renewed supply anxieties after several key U.S. allies rejected President Donald Trump’s calls to deploy warships to the region to escort tankers through the besieged waterway.
Tradingview data shows Brent crude rose $2.48, or 2.5%, to $102.69 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $2.42, or 2.6%, to settle at $95.92. The gains reversed losses from the previous session, during which prices had dipped slightly on reports that a handful of vessels had successfully navigated the passage.
The price spike follows a weekend of heightened diplomatic tension. President Trump warned that NATO members could face a “very bad future” if they failed to assist in reopening the strait, which handles approximately 20% of the world’s oil and liquefied natural gas (LNG) trade.
Despite the pressure, nations including France, the United Kingdom, and Japan have so far declined to commit naval assets, preferring to seek diplomatic de-escalation.
The conflict has forced major producers to throttle back output due to the inability to move product.
The United Arab Emirates (UAE) has reportedly shut in more than half of its oil production as storage capacity nears its limit.
Meanwhile, Iran continues to threaten strikes on regional energy infrastructure in retaliation for ongoing U.S. and Israeli military operations.
While Tehran has granted rare passage exceptions to specific nations—including India, Iraq, and Bangladesh—commercial transit remains at a near-standstill. Maritime intelligence firms report that AIS-confirmed vessel crossings have hit record lows.
