Oil Prices Recover After Sharp Fall Amid Iran U.S. Standoff

Brent crude futures rose $6.11, or 6.76%, to $96.49 per barrel at 2327 GMT, while U.S. West Texas Intermediate (WTI) gained $6.53, or 7.79%, to $90.38 per barrel, according to data reported by Reuters. The recovery comes after both benchmarks had dropped more than 9% on April 18, marking their steepest single-day fall since April 18.

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The earlier decline followed statements from Iran and the U.S. suggesting that the Strait of Hormuz would remain open during a temporary ceasefire. However, the situation reversed over the weekend after both countries accused each other of attacking ships and violating the agreement.

Renewed Tensions Disrupt Supply Route

U.S. President Donald Trump stated on April 19 that the U.S. military had seized an Iranian cargo ship attempting to breach its blockade, according to Reuters. In response, Iran announced it would not participate in a second round of peace talks and signaled the possibility of further escalation.

The U.S. continues to maintain a blockade on Iranian ports, while Iran has reimposed restrictions on the Strait of Hormuz. Before the conflict began nearly two months ago, the strait accounted for approximately 20% of global oil supply, making it one of the most critical energy transit routes worldwide, as per industry estimates cited by Reuters.

Shipping Activity Shows Partial Movement

According to data by Kpler, over 20 ships passed through the Strait of Hormuz on April 19, transporting goods including crude oil, liquefied petroleum gas, metals, and fertilizers. This is the most passages since March 1. But it's still not clear if this level of access will continue.

Market participants are closely tracking developments, as disruptions in the strait directly affect global oil supply chains and pricing.

Market Volatility Continues

Oil prices have been very volatile for some time because of the constant changes in geopolitical issues. The reason for the current fluctuations is the mixed reports about the condition of the Strait of Hormuz and also military operations in that area, according to Reuters.

The recent rise in prices comes from worries over supplies following its closure and contradicts the previous period of calm after the ceasefire ended.