WTI, Brent as markets weigh Hormuz blockade against diplomacy
An aerial view of the Chevron EL Segundo refinery, one of the largest oil processing facilities in California, is seen over Manhattan Beach, California, on April 8, 2026.
Mario Tama | Getty Images
Oil prices fell on Tuesday as traders weighed a U.S. blockade of Iranian shipping and signs that Washington and Tehran may resume peace talks.
U.S. crude oil futures for May delivery fell more than 2% to $96.91 a barrel. Brent, the international benchmark for June delivery, was last traded at $97.49 per barrel, down 1.88%.
U.S. Vice President J.D. Vance said Monday that the next steps in the U.S.-Iran peace effort are now up to Tehran, after returning from weekend talks that produced no progress.
“Even if we talk more, even if we eventually come to an agreement, I think the ball is in Iran’s court because we’re putting a lot of things on the table,” Vance said in an interview with Fox News.
He also stated that the agreement could benefit both parties if the US’s conditions, especially regarding Iran’s nuclear program, are met.
Oil prices since the beginning of the year
This comes as the United States launched a “blockade” of Iranian ports in the Persian Gulf on Monday. President Donald Trump said on Sunday that the United States would blockade the strait, marking a sharp escalation after a two-week ceasefire.
United States Central Command later said the measures would apply only to ships entering or leaving Iranian ports and coastal areas.
The blockade “directly jeopardizes” Iran’s oil exports through the Strait of Hormuz, which reached nearly 1.7 million barrels per day last month, according to Vivek Dhar of the Commonwealth Bank of Australia.
“So the blockade further tightens the markets for physical oil and refined products,” he said.
