The Strait of Hormuz, once a golden pathway for global energy trade, has faced a dramatic upheaval since February 28, 2026. Following the launch of an air war by the United States government and Israel against Iran—including the assassination of Iran’s supreme leader, Ali Khamenei—Iran retaliated with missile and drone attacks on Israel, US bases, and Gulf allies.
Iran went a gigantic, unprecedented step farther and shut down the Strait of Hormuz, thus preventing valuable commercial vessels from passing through to reach their destinations to offload energy products and other goods worth up to billions of dollars.
Meanwhile, the Islamic Revolutionary Guard Corps (IRGC) swiftly responded by declaring the strait closed to international shipping. News media said Iran launched 21 confirmed attacks on merchant vessels and is reportedly deploying sea mines. Iranian media reported the Strait of Hormuz closed because the U.S. “did not fulfill its obligations to lift the blockade of Iranian ports.”
“Iran agreed to allow a limited number of ships to pass through the Strait of Hormuz according to agreements,” the Islamic Republic of Iran Broadcasting (IRIB) service said in a post on X.
“But the U.S. did not fulfill their obligations. So, the Strait of Hormuz is now closed again, and passage requires IRAN approval,” IRIB said in a statement on Saturday, April 18.
Iran’s Revolutionary Guards Navy said the Strait of Hormuz is closed until the U.S. blockade is lifted. The Navy officials issued a dire warning. “No vessel should make any movement from its anchorage in the Persian Gulf and the Sea of Oman, and approaching the Strait of Hormuz will be considered cooperation with the enemy and be targeted.” Until these recent back-and-forth battles, the Strait of Hormuz was open and bustling, handling roughly a quarter of the world’s seaborne oil trade and 20% of liquefied natural gas (LNG) shipments.
Now, the world-renowned maritime corridor stands as a flashpoint in global geopolitics, with energy markets and shipping routes feeling the strain of ongoing horrific conflict and uncertainty.
As expected, national and international consumers are feeling the strain on their pockets, paying an extra amount of money for gas as the unrelenting tensions between the U.S.-Israel and Iran continue. For example, a gallon of regular gas cost an average of nearly $4.05 in the U.S. on Sunday, according to the motor club federation AAA. That’s about 8 cents lower than a week ago, but far higher than $2.98 before the war.
Biggest Impact on Prices and Corporate Profits Following U.S.-Israeli & Iran War
The ongoing US war with Iran has continued to create increases in petrol, gas, and food prices worldwide, severely affecting workers and raising the risk of food shortages in poorer nations. While many struggle with these rising costs, major corporations—especially oil companies—are seeing extraordinary profit gains.For eight weeks the US-Israeli war against Iran triggered one of the worst global energy crises in decades. Europe and Asia are two countries that import the majority of their oil from the Gulf. Both countries have been hit awfully hard, causing the impact of supplies and production to halt, although the continuation of rising gasoline, diesel, and jet fuel prices is affecting businesses and consumers worldwide.
A reporter asked Energy Secretary Chris Wright if he thought U.S. motorists would someday see gas cost less than $3 a gallon. Wright said prices at the pump might not go down that much until next year.
“But prices have likely peaked, and they’ll start going down,” Wright told CNN’s “State of the Union” on Sunday.
According to a Guardian investigation, with oil prices around $100 per barrel, leading oil companies in Saudi Arabia, Russia, the US, Britain, and Europe are projected to earn an extra $234 billion in profits throughout 2026. This equates to roughly $30 million in additional profits every hour for the rest of the year:
- Saudi Arabia’s Aramco leads the pack with an expected $25.5 billion war profit.
- Russian firms stand at $23.9 billion. US companies like ExxonMobil, Chevron,
- Shell will also benefit significantly, with billions more in revenue.
- These gains come atop the oil industry’s already massive $1 trillion annual income, boosted by $1.3 trillion in subsidies in 2022.
Beyond profits, stock market values have surged, with ExxonMobil’s market capitalization rising by $118 billion and Shell’s by $34 billion, underscoring how conflict-driven price hikes disproportionately enrich large corporations.
Iran Temporarily Reopened the Strait of Hormuz Which Forced Oil Prices To Decrease Slightly
Following Iran’s foreign minister’s announcement that the Strait of Hormuz was open to commercial ships, the price of oil fell precipitously, and two U.S. market indexes reached all-time highs on Friday. International Brent crude fell 9% to $90.38 per barrel, while U.S. crude fell 11.4% to $83.85 per barrel, its lowest level since March 10. For both U.S. and Brent crude oil, Friday marked the second biggest one-day decline since the start of the war. As a stand-in for jet fuel, heating oil futures fell 10%. Futures for wholesale RBOB gas also dropped 5%.
President Donald Trump celebrated the news with his own post on Truth Social, which read: “IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE.” However, in a blow to Iran, Trump, in a second post, said that “the Naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete.”
GasBuddy analyst Patrick De Haan wrote on X that the shift in oil prices could quickly translate to lower gas prices. “This could accelerate sending fuel prices lower starting this weekend with the national average likely falling below $4/gal to perhaps $3.65-$3.85,” De Haan wrote. As of Friday afternoon, the average price per gallon was $4.09, according to AAA, and has been declining a few cents each day this week.
Gas in the Lone Star State of Texas averages $3.67 to $3.69. Texas has some of the lower gas prices in the nation.
Trump’s Blockade Forced Iran to Shut Hormuz Waterway Again
Iran officials, unsatisfied with Trump’s hard stance on refusing to lift the blockade, decided to close the Strait of Hormuz again. On Sunday, April 19, higher gas prices had slightly declined beginning on Friday, April 17.
Global Uprisings: How Other Corporations Cash In:
As global instability rattles markets, major trading firms and corporations are seizing the moment to reap substantial profits. While oil producers are traditional beneficiaries, trading giants dealing in commodities like oil, food, and metals—such as Switzerland’s Gunvor—are also thriving. Gunvor reportedly matched its entire 2025 profit of $1.6 billion within just the first quarter this year, and similar windfalls are likely across the sector.U.S. arms manufacturers have not been left behind. After the U.S. attack on Iran, the combined market value of leading defense firms surged by as much as $30 billion in a single day, reflecting how geopolitical events can drive immediate financial gains.
Conclusion
Iran’s decision to re-close the Strait of Hormuz carries steep implications for global energy markets, particularly the impact on the U.S. The strait facilitates approximately one-fifth of the world’s oil trade. It’s closure, continuing to disrupt supply chains, thus creating uncertainty and reducing oil availability worldwide. Since the U.S. depends on global oil markets despite domestic production, this action tends to push crude oil and gas prices higher. Supply interruptions often prompt traders to raise prices as a precaution, resulting in more expensive fuel for American consumers.
In response, President Trump has taken a firm stance, focusing on sanctions and restrictions on Iranian crude oil and energy imports into the U.S. This policy aims to economically pressure Iran and signals a tough approach against what the administration considers punitive and destabilizing actions. A combination of geopolitical tensions and sanctions keeps prices elevated until a resolution or ceasefire is reached.
During an interview with reporters last week about Iran re-closing the Hormuz waterways to block commercial vessels from delivering energy products, President Trump snapped, “Iran got a little cute. They can’t blackmail us.” Trump further explained to reporters he would not extend the “two-week ceasefire with Iran” that is scheduled to end Wednesday, April 22.
Trump’s final words appeared threatening when he stated, “Unfortunately, we’ll have to start dropping bombs again.
C. Walker is a NewsBlaze senior reporter and editor for HoustonNewsToday.com. He has written about various subjects during his career, which include politics, business, criminal justice, true crime, financial topics, community interest, neighborhood events, and human interest. Walker can be reached at HoustonNewsToday@yahoo.com
