Oil Surges Over 5% as US Seizes Iranian Cargo Ship, Tehran Warns of Retaliation

Gate News message, April 20 — Oil prices jumped more than 5 percent in early Monday trading after the US seized an Iranian cargo ship attempting to breach the American blockade of the Strait of Hormuz, with Tehran warning of retaliation.

Brent crude futures rose $5.08 to $95.46 per barrel, up 5.62 percent, while West Texas Intermediate (WTI) crude climbed $5.01 to $88.86 per barrel, up 5.97 percent. The US Navy took custody of the Iranian-flagged vessel Touska, which President Trump announced on Truth Social was under US Treasury sanctions for prior illegal activity. Iran initially denied the seizure but later stated: “We warn that the armed forces of the Islamic Republic of Iran will soon respond to and retaliate against this armed piracy by the US military.”

According to Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (Adnoc), approximately 600 million barrels of oil have been blocked since the blockade began. The Strait of Hormuz, through which roughly one-fifth of global crude normally flows, has seen near-standstill traffic since the US and Israel launched attacks on Iran on February 28. Oil had fallen more than 9 percent on Friday after Iran signaled it would reopen the strait; more than 20 vessels passed on Saturday, according to shipping analytics firm Kpler.

Broader market impacts included a 1.3 percent decline in gold prices to $4,794 per ounce, while Saudi Arabia’s benchmark stock index fell 0.8 percent with oil giant Saudi Aramco dropping more than 1 percent.