Hormuz Blockade Enters New Week with No Signs of Resolution

The ongoing conflict between Iran and the US has led to another weekend of heightened tensions in the oil market. The Strait of Hormuz, a critical chokepoint for global oil trade, remained closed on Friday, with only two vessels transiting through it, none carrying crude oil. This has resulted in a sustained increase in Brent and WTI prices, with both up 6% and 5.4%, respectively, this week.

Iran's Deputy Foreign Minister Kazem Gharibabadi stated on Saturday that the strait would remain closed until Washington accepts defeat. US President Donald Trump, meanwhile, told Americans to 'accept a tiny little bit more' for gasoline as the price of preventing Iran from acquiring a nuclear weapon. He also suggested that the US could eventually declare the Strait of Hormuz as US territory once the conflict is resolved.

The average US gasoline price has risen 29% year-over-year, reaching $4.08 per gallon on Friday. The blockade has driven up domestic inflation in Iran, with President Masoud Pezeshkian acknowledging that sanctions and port blockades are to blame. The conflict has also taken a toll on Yemen, where Houthi forces fired ballistic missiles at the Red Sea port of Mocha on Friday, killing four civilians.