Oil jumps as US–Iran talks stall, Hormuz tanker squeeze

NEW YORK: Oil prices climbed early on Monday (April 27, 2026) after renewed geopolitical tensions between Iran and United States stalled peace talks and contributed to continued disruption of shipments through the strategically vital Strait of Hormuz, traders and analysts said.

As of 8.20am Tokyo time, Brent crude futures rose nearly 2% and US West Texas Intermediate crude was up roughly the same, both benchmarks hitting multi-week highs, as markets priced in the risk of sustained supply constraints tied to the standoff.

Iran’s refusal to move forward in negotiations and its repeated threats to restrict tanker traffic in the narrow Hormuz Strait have kept the waterway effectively closed for much of the past month.

Iran’s repeated assertions that it could restrict or shut down passage through the Gulf chokepoint — through which about one-fifth of the world’s seaborne oil passes — have added a significant “risk premium” to crude markets, according to marine insurance industry reports, given the recent intermittent reopenings of the route.

The International Energy Agency (IEA) has warned that the prolonged disruption in the strait is sharpening what had already been one of the most tumultuous periods in the global oil market in decades.

The broader conflict has lifted prices and contributed to rising costs for fuels and other commodities worldwide, affecting energy consumers from Asia to Europe.

• Oil jumped more than 2% Monday as stalled U.S.–Iran peace negotiations and restricted shipments through the Strait of Hormuz tightened global supply concerns.

• Following the crisis over the strait and the broader conflict, analysts warn of prolonged high fuel and food prices, with impacts expected to persist across global markets.

• A broader energy realignment is underway, as U.S. shale exports rise and renewable energy demand accelerates amid sustained Middle East uncertainty.