April 30, 2026 Crude oil prices fall amid demand concerns and Iran tensions Crude oil prices fell sharply on Thursday as signs of weaker global energy demand collided with escalating geopolitical tensions in the Middle East and ongoing disruptions to global supply chains.
Market Reactions and Supply Disruptions
June WTI crude oil closed down 1.81 (-1.69%) on Thursday, while June RBOB gasoline edged up 0.0228 (+0.63%) as gasoline prices hit a 3.75-year high. The decline in crude prices comes despite significant supply disruptions, including the closure of the Strait of Hormuz, a critical chokepoint for global oil shipments. About a fifth of the world's oil and liquefied natural gas transits through the strait, which has been blockaded by the US since April 13.
Goldman Sachs estimates that crude output in the Persian Gulf has been curtailed by about 14.5 million barrels per day (bpd), or more than 50%, so far in April. The International Energy Agency (IEA) reported that approximately 13 million bpd of global oil supply has been shuttered due to the Iran conflict and the strait's closure. Persian Gulf producers have been forced to cut production by roughly 6%, exacerbating the strain on global inventories.
Escalating Tensions in the Middle East
The US Central Command has prepared a plan for what it described as "a short and powerful wave of strikes on Iran" and has requested hypersonic missiles be sent to the Middle East. President Trump is expected to be briefed on new military options for action in Iran, while the US naval blockade of the Strait of Hormuz remains in place. Trump emphasized that the blockade "will remain in full force" until a deal is fully agreed.