Oil Prices Rise as US Starts Blockade of Iran
Speakers
Rebecca Babin
— Senior Energy Trader, CIBC Private Wealth
Summary
Rebecca Babin analyzes the impact of U.S. blockade on Iranian ports and Strait of Hormuz disruptions on oil markets. She argues that supply recovery will be slow, supporting higher oil prices, and warns of further risks if Red Sea disruptions occur.
- Oil prices rising due to U.S. blockade and supply disruptions.
- Physical market shows disconnect from paper market trading.
- Production shut-ins in Middle East to take weeks to months.
- Shipping constraints in Strait of Hormuz affect supply normalization.
- U.S. oil exports increasing but insufficient to offset losses.
- Risk of Red Sea disruption could exacerbate supply issues.
- Market implications include higher crude oil prices and volatility.
Trade Ideas
Oil prices supported by slow supply recovery.
The physical market for crude oil is disconnected from the paper market, with supply disruptions from the Strait of Hormuz and production shut-ins in the Middle East expected to take weeks to months to normalize, supporting higher oil prices despite temporary sell-offs in the paper market.
Red Sea disruption would spike oil prices.
If the Red Sea is disrupted by Houthi activity resuming, it would be very significant for the energy market, with 5 million barrels per day rerouted, leading to much higher crude oil prices and a worse market picture.
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This Bloomberg Markets video, published April 13, 2026, features Rebecca Babin discussing BRENT, WTI. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Rebecca Babin · Tickers: BRENT, WTI