Oil surges as Iran signals Hormuz leverage amid Gulf tensions and supply risk.
Oil prices surged again on Monday after Iran’s new supreme leader signaled that the country would continue to use the Strait of Hormuz as leverage. Mojtaba Khamenei, in his first public message broadcast on state television since taking office, said the closure of Hormuz “must continue to be used as leverage” and described it as a core means to pressure adversaries. In a separate market update, U.S. West Texas Intermediate (WTI) crude for April delivery jumped 9.72% from the previous session, settling at $95.73 a barrel. Brent crude for May rose 9.70%, trading at $100.90 a barrel as of 2:40 p.m. ET.
The statement comes amid heightened tensions surrounding Iran and a broader U.S.-Israel confrontation, with Iran’s leadership change and the targeted strikes cited as factors driving risk sentiment in energy markets. The new leader’s public stance marks a sharp signal that regional pressure tactics remain on the table, even as Iran’s political leadership evolves.
Tensions around Hormuz have intensified after overnight attacks on vessels near Iraq’s and the United Arab Emirates’ coasts. Authorities reported two oil tankers and one cargo ship were attacked in that vicinity. The Strait of Hormuz, one of the world’s most important chokepoints, channels roughly 20% of global oil supply from the Persian Gulf to the rest of the world.
The United States has signaled continued concern about securing shipping through Hormuz. U.S. Energy Secretary Chris Light told CNBC that the U.S. Navy is not yet prepared to escort tankers through the strait and that available U.S. assets are focused on countering Iran’s ability to carry out attacks.
In parallel, the International Energy Agency announced a record release of oil stocks, agreeing to release a total of 400 million barrels from member countries’ stockpiles. Market participants have cautioned that even this unprecedented stock release may do little to fully counter a prolonged disruption at Hormuz, given the scale and uncertainty of the threat.
Analysts said the stock release could offset only a portion of the potential supply gap. ING Bank warned that sustained oil-price declines would require continued flows of crude through Hormuz, implying that without a stable channel for supply, renewed price pressure could re-emerge. If shipments remain constrained, the market may not see a lasting pullback in prices.
Looking ahead, investment strategist Pavel Molchanov of Raymond James Drilling & Energy notes that even a large reservoir of released stock can take 60 to 90 days to influence actual market prices and availability. He characterized the current disruption as among the largest oil-supply shocks since the 1970s, underscoring that the market remains in a critical and uncertain phase where immediate relief may be limited.
For U.S. readers, the developments matter beyond regional politics. A sustained risk to Hormuz could translate into higher energy prices, affecting gasoline costs, inflation, and consumer spending in the United States. The episode also has implications for global energy security, export dynamics in the Gulf, and the reliability of supply chains that depend on stable oil markets and timely shipping through key chokepoints.