Oil Surges Past $119 as Iran Blockade Fears Intensify, UAE Quits OPEC
JUBA, South Sudan — Global oil prices surged past $119 a barrel on Wednesday, the highest level in months, after reports emerged that the United States is preparing for an extended blockade of Iran’s ports amid the ongoing war in the Middle East.
Brent crude briefly hit $119 (£88) per barrel on Wednesday evening — a nearly 7% single-day spike — as markets reacted to news that President Donald Trump met with energy executives including Chevron CEO Mike Wirth at the White House to discuss limiting the fallout from the conflict on American consumers.
The meeting, coupled with reports from the Wall Street Journal that Trump has instructed aides to prepare to extend the blockade of Iran’s ports, signaled to traders that the effective closure of the Strait of Hormuz will continue for a prolonged period.
UAE Exits OPEC
In a stunning development that added to market volatility, the United Arab Emirates announced Tuesday it will withdraw from the Organization of the Petroleum Exporting Countries (OPEC), effective May 1, 2026. The decision marks a historic shift in global energy geopolitics and raises questions about the future cohesion of the oil cartel.
King Charles at the White House
Meanwhile, King Charles III and Queen Camilla are concluding a historic state visit to Washington, D.C., at a time of considerable strain in the U.S.-British relationship over the Iran war. At Tuesday’s White House state dinner, President Trump said the King agrees with the U.S. position that Iran should not possess a nuclear weapon. The visit — which also marked the 250th anniversary of American independence — comes as oil prices drive up the cost of living on both sides of the Atlantic.
Global Economic Fallout
Brent crude has surged by over 82% so far this year, with U.S. gasoline prices rising more than 40% to roughly $4.18 a gallon since the U.S. and Israel launched strikes on Iran on February 28. Iran responded by severely restricting shipping through the Strait of Hormuz — which normally carries about a fifth of the world’s oil supply. Tehran has warned that any vessel approaching the strait would be targeted.
In Africa, South Africa’s National Treasury has extended emergency fuel levy relief measures, cutting the diesel levy to zero and extending a R3 per litre reduction on petrol into June, as rapidly rising fuel prices driven by the Middle East conflict squeeze households and businesses across the continent.
South Sudan Context
The global energy crisis compounds existing challenges in South Sudan, which continues to grapple with a humanitarian crisis. Earlier this week, 15 people were killed in a plane crash near Juba involving a CityLink Aviation Cessna 208 Caravan, underscoring the country’s infrastructure vulnerabilities. The United Nations has also warned that children in neighboring Darfur are at a “breaking point” facing extreme hunger and violence.
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