Oil Surges Past $100 as U.S. Moves to Block Up to 2 Million bpd of Iranian Supply

Oil prices surged more than 8%, with Brent reaching $102.80 and WTI hitting $104.88 per barrel, as the U.S. prepared a naval blockade of the Strait of Hormuz. The move could restrict up to 2 million bpd of Iranian-linked oil flows, significantly tightening global supply. The blockade, set to begin at 1400 GMT, follows failed U.S.-Iran negotiations and threatens a fragile two-week ceasefire. Analysts warn the action could disrupt broader Gulf exports and prolong elevated oil and gasoline prices through November. Despite tensions, limited tanker movement resumed, while Saudi Arabia restored pipeline capacity to around 7 million bpd to offset potential disruptions.

___________________________________

Headlines

· Oil Surges Past $100 as U.S. Moves to Block Up to 2 Million bpd of Iranian Supply

· Trump Vows Full Hormuz Blockade After Talks Collapse

· U.S. to Enforce Iran Port Blockade from 1400 GMT

· Saudi Restores East-West Pipeline to 7 Million bpd After Attacks Cut 700,000 bpd

· Chinese VLCCs First to Cross Hormuz After Ceasefire as Shipping Tentatively Resumes

· India Grants Rare Approval for Iranian Oil Cargoes as Up to 8 Million Barrels Arrive via Sanctioned Tankers

· U.S. Loans 8.5 Million Barrels from SPR as Part of 172 Million Barrel Plan to Curb Oil Spike

· Trump Warns $4+ Gas May Persist as Oil Prices Surge 50%

· Japan Seeks Asian Cooperation to Ease Oil Bottlenecks Despite Ample Reserves

· Taiwan Prepares Blockade-Breaking Drills

· Singapore Rejects Iran Talks on Maritime Rights, Malaysia Secures Passage

· Europe Warns of Jet Fuel Crisis Within 3 Weeks as Prices Surge to $200/bbl

___________________________________

U.S. to Enforce Iran Port Blockade from 1400 GMT, Targeting All Maritime Traffic

Donald Trump ordered a U.S. naval blockade targeting all ships entering and leaving Iranian ports, set to begin at 10 a.m. ET (1400 GMT) on Monday. The operation, led by U.S. Central Command, will apply to vessels of all nations but will not restrict ships transiting to non-Iranian ports through the Strait of Hormuz. The move follows failed U.S.-Iran peace talks and raises tensions despite a fragile two-week ceasefire. While narrower than a full closure of Hormuz, the blockade effectively targets Iranian oil exports and maritime trade flows.

___________________________________

Saudi Restores East-West Pipeline to 7 Million bpd After Attacks Cut 700,000 bpd

Saudi Arabia has restored full capacity on its East-West oil pipeline to about 7 million bpf following attacks linked to the Iran conflict. The strikes had reduced pipeline throughput by around 700,000 bpd and cut overall production capacity by approximately 600,000 bpd. Output losses included about 300,000 bpd each from the Manifa oilfield and the Khurais facility, though Manifa has now recovered while Khurais restoration is ongoing. The pipeline has been Saudi Arabia’s critical export route during the Strait of Hormuz disruption. The rapid recovery is expected to support supply stability in both domestic and global oil markets.

___________________________________

Chinese VLCCs First to Cross Hormuz After Ceasefire as Shipping Tentatively Resumes

Two Chinese VLCCs, Cospearl Lake and He Rong Hai, transited the Strait of Hormuz on Saturday, marking the first known tanker movements since the U.S.-Iran ceasefire. The vessels, chartered by Unipec, the trading arm of Sinopec, used a trial anchorage route bypassing Iran’s Larak Island. Their passage signals a tentative resumption of oil flows through the critical chokepoint.

___________________________________

India Grants Rare Approval for Iranian Oil Cargoes as Up to 8 Million Barrels Arrive via Sanctioned Tankers

India granted a one-time exemption for four sanctioned tankers—Kaviz, Lenore, Felicity, and Hedy—to berth at Sikka port at the request of Reliance Industries, marking the first Iranian cargo access since May 2019. The vessels include VLCCs capable of carrying up to 2 million barrels each, bringing total potential inflows to around 8 million barrels. The move follows a temporary U.S. sanctions waiver expiring April 19 and comes amid severe supply disruptions linked to the Strait of Hormuz crisis. All four tankers, each over 20 years old and part of Iran’s shadow fleet, required special approval due to lacking internationally recognized certifications. Despite the clearance, Reliance may still refrain from processing the crude to remain compliant with sanctions and domestic regulations.

___________________________________

U.S. Loans 8.5 Million Barrels from SPR as Part of 172 Million Barrel Plan to Curb Oil Spike

The U.S. Department of Energy has loaned 8.48 million barrels of crude from the Strategic Petroleum Reserve (SPR) to companies including Gunvor, Phillips 66, Trafigura, and Macquarie. This marks the second batch under a broader plan to release up to 172 million barrels through 2027 to stabilize markets during the Iran war-driven price surge. The initiative is part of a coordinated effort with 32 countries under the IEA to release a total of 400 million barrels. In the first batch, companies took 45.2 million barrels, about 52% of the offered volume. The SPR loans require repayment with additional barrels as a premium, aiming to ease supply tightness without direct taxpayer cost.