Iran Blocks Strait of Hormuz Tankers Driving Oil Prices Above $100

A conflict involving Iran entered its sixth week in April 2026, causing significant turmoil in global oil markets. The situation escalated on Thursday morning when Iran halted the passage of oil tankers through the Strait of Hormuz, accusing the United States of violating three clauses of the 10-Point Proposal. This blockade disrupted a critical supply route that handles 20% of global oil flow, sending West Texas Intermediate Crude oil futures up 4.85% to nearly $99 a barrel, with overall crude prices eventually exceeding $100 per barrel.

The supply shock triggered widespread economic concerns regarding inflation and potential monetary tightening by central banks, with analysts expecting Canadian stocks to open lower. Despite the geopolitical volatility, major integrated energy companies reported increased profits. Exxon Mobil and Chevron saw their stock prices surge 35% and 32% year-to-date, respectively. Both companies maintained strong cash flows and dividend payouts by leveraging low-cost production in regions such as the Permian Basin.