Iran announced on April 23 that it will not reopen the Strait of Hormuz while a U.S. naval blockade remains active. Tehran recently seized two commercial vessels and attacked a third ship in response to the blockade. These maritime restrictions have sharply reduced energy flows from the Gulf.
Brent crude futures climbed over 3.6% following the announcement. Prices for the benchmark surpassed $105 per barrel. West Texas Intermediate jumped more than 4%.
U.S. Navy Secretary John Phelan resigned abruptly during the escalating naval operations. The ongoing standoff continues to exert sustained upward pressure on global energy markets.