The United States has authorized Iranian oil sales through August, easing decades-old sanctions following productive negotiations in Switzerland. The move comes as part of a broader push toward a final peace deal involving nuclear inspections and free transit through the Strait of Hormuz.
Britain has postponed implementing sanctions that would ban imports of diesel and jet fuel refined from Russian crude oil in third countries, citing supply issues and rising fuel prices caused by the Iran war. The ban was originally announced in October.
Aramco CEO Amin Nasser stated the current energy supply shock from the Strait of Hormuz closure is the 'largest the world has ever experienced,' with 100 million barrels per week of oil supply lost globally.
Oil prices jumped approximately 6% on Monday following Iranian attacks on a UAE oil port and ships in the Strait of Hormuz over the past 24 hours, marking the most serious escalation since a U.S.-Iran ceasefire took effect in early April.
Brent crude jumped more than 6% to $118 per barrel; its highest since June 2022, after Trump told Axios the blockade would remain until Iran agreed to a nuclear deal, with Citi warning prices could reach $150 if the Hormuz disruption continues through June. The World Bank separately warned the war has triggered the largest oil supply shock on record, projecting a 24% surge in energy prices in 2026.
The UAE announced its withdrawal from OPEC and OPEC+ effective May 1, dealing a significant blow to the oil cartel's unity. The move comes as the organization struggles with production quotas and amid the ongoing Iran conflict affecting global energy markets.
Crude oil prices jumped nearly 8% to over $103-104 per barrel following Trump's announcement of the Iranian port blockade and the failure of peace talks. Physical oil prices in some markets approached $150 as buyers paid record premiums for immediate delivery amid supply disruption fears.
President Trump threatened to destroy Iran's Kharg Island oil export hub and other critical infrastructure unless Tehran quickly accepts a peace deal, while simultaneously claiming the US could end military operations within 2-3 weeks. The mixed messaging comes as the war enters its second month with no clear resolution.
US President Donald Trump told the Financial Times he wants to 'take the oil' in Iran and could seize Kharg Island 'easily,' raising the prospect of US forces capturing Iran's main oil export hub. The comments came as 2,500 US Marines arrived in the region and oil prices surged above $115 per barrel.
Treasury Secretary Scott Bessent announced the US will temporarily allow the sale of Iranian oil shipments already in transit, estimated to add 140 million barrels to the market. The move comes as oil prices hit their highest settlement since July 2022 amid Iran's closure of the Strait of Hormuz during the ongoing US-Israeli conflict with Iran.
