Oil Prices Surge as Iran Maintains Restrictions on U.S. and Allies in the Strait of Hormuz

Oil prices saw a significant increase on April 27, 2026, following Iran's reaffirmation that the Strait of Hormuz would "in no way" return to its previous status for the United States and its allies.

The price of Brent crude, the global benchmark, jumped by approximately 2.14%, reaching $107.58 per barrel, while U.S. crude oil rose by 2.08%, settling at $96.36 per barrel. This surge came after Iran made clear that the issue of the Strait of Hormuz is a matter of its national sovereignty, and the situation would not revert to what it was before the United States and Israel's aggression against Iran.

In a telephone conversation with Pakistani Prime Minister Shehbaz Sharif on Saturday, Iranian President Massoud Pezeshkian stated that ongoing U.S. actions were undermining trust and complicating prospects for dialogue. Pezeshkian also emphasized that Iran would not engage in "forced negotiations" with the U.S., and that the American naval blockade of Iranian ports must end before any agreement could be reached.

The U.S.-Israeli aggression, U.S. threats to resume airstrikes on Iran if a deal is not reached, and the ongoing restrictions in the Strait of Hormuz have all contributed to the global rise in oil prices.

"We realized that if we were to block the Strait of Hormuz and the Bab el-Mandeb Strait, 25% of the world's economy would be affected," said Ali Nikzad, Vice President of the Iranian Parliament, on Sunday.

The average price of gasoline in the U.S. stood at $4.10 per gallon on Sunday, according to AAA data. Although prices had dropped from a recent peak, they have risen by approximately 27% since the beginning of the U.S.-Israeli aggression against Iran.

The U.S.-Israeli aggression against Iran began on February 28 with airstrikes that resulted in the deaths of senior Iranian officials and commanders, targeting the country’s infrastructure, including its economic assets. The latest figures indicate that more than 3,300 Iranians have been killed in the aggression.

In retaliation, Iran's armed forces have launched regular missile and drone operations targeting sites in Israel as well as U.S. military bases and installations across the region.

Furthermore, Iran has responded to these attacks by closing the Strait of Hormuz to vessels belonging to the U.S. and its allies, which have participated in or supported the aggression. This closure has led to a significant rise in oil prices and its derivatives.

On April 8, forty days after the onset of the war, a temporary ceasefire brokered by Pakistan came into effect. Negotiations were subsequently held in Islamabad but failed to reach an agreement due to Washington’s excessive demands and insistence on unreasonable positions.

Since then, Iran has firmly refused to resume dialogue unless the U.S. lifts the illegal blockade imposed on Iranian ships and ports. Tehran has also declared that as long as this blockade remains in place, it has no intention of reopening the Strait of Hormuz.

The U.S. naval blockade of Iranian ports has failed to achieve its declared goal of cutting Iran’s oil revenues.