President Trump just turned the tables on Iran by announcing Sunday he intended to implement a total naval blockade of all oil tankers moving through the Strait of Hormuz, a move that took away Iran’s ability to restrict the flow of tankers to those it allowed.
He made the announcement after peace talks failed in Pakistan and at the same time threatened to destroy “the little that is left of Iran.” The president made a pair of Truth Social posts.
“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz. At some point, we will reach an “ALL BEING ALLOWED TO GO IN, ALL BEING ALLOWED TO GO OUT” basis, but Iran has not allowed that to happen by merely saying, “There may be a mine out there somewhere,” that nobody knows about but them. THIS IS WORLD EXTORTION, and Leaders of Countries, especially the United States of America, will never be extorted. I have also instructed our Navy to seek and interdict every vessel in International Waters that has paid a toll to Iran. No one who pays an illegal toll will have safe passage on the high seas. We will also begin destroying the mines the Iranians laid in the Straits. Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL! Iran knows, better than anyone, how to END this situation which has already devastated their Country. Their Navy is gone, their Air Force is gone, their Anti Aircraft and Radar are useless, Khomeini, and most of their “Leaders,” are dead, all because of their Nuclear ambition. The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION. They want money and, more importantly, they want Nuclear. Additionally and, at an appropriate moment, we are fully “LOCKED AND LOADED,” and our Military will finish up the little that is left of Iran! President DONALD J. TRUMP.”
As intense peace talks between the U.S. and Iran were underway Friday in Pakistan, oil prices finished 13% down for the week. They also fell on Friday, posting their biggest weekly decline since 2022.
Prices closed less than $100 a barrel with Brent, the global benchmark, closing down 72 cents or 0.8% at $95.20 a barrel.
West Texas Intermediate crude in the U.S. dropped $1.30 or 1.3% and closed at $96.57 a barrel on the New York Mercantile Exchange. For the week, it fell 13.4% which was the largest decline since April 2020 and that was during the lockdowns for the pandemic.
Prices still were impacted by Iran’s heavily restricted flow of any of the nearly 200 tankers that have been stranded in the Persian Gulf since the start of the war.
Analysts say the key issue for the world oil market is whether ship traffic will resume through the Strait of Hormuz but Iran is not giving any indication it will do so. Traffic is less than 10% of normal volumes and those allowed through the Strait were linked to Iran.
Reuters reported that more than 60 energy infrastructure assets across the Gulf have been hit by drone and missile strikes. While most attacks are not expected to cause prolonged disruptions, at least eight facilities face lengthy repair timelines, according to a Thursday note from Natasha Kaneva, head of global commodities research at J.P. Morgan.
Natural gas prices finished down on Friday, closing at $2.648 MMBtu with a decline of $.0.022 or 0.82%.
Most Oklahoma energy stocks ended the week’s trading on Friday with losses. Stardust Power led all with a more than 4% drop for the day. Mach Natural Resources finished with the highest percent jump at a strong 2%.