US Energy Secretary Chris Wright stated on April 13 that oil prices are likely to reach their peak in the coming weeks until shipping in the Strait of Hormuz resumes significantly. His comments were made during the Semafor World Economic Forum in Washington, as reported by Reuters.
“We will see high energy prices — and possibly even an increase — until shipping through the Strait of Hormuz resumes significantly. The peak in prices is likely to occur in the coming weeks,” Wright said.
On April 12, President Donald Trump acknowledged that oil and gasoline prices may remain elevated until the midterm elections in November. Since the onset of hostilities on February 28, Iran has largely blocked the Strait of Hormuz to all vessels except its own, aiming to establish permanent control over the waterway and potentially charge ships for passage.
Wright also addressed the situation regarding oil production in Venezuela. Following the US detention of President Nicolás Maduro on January 3, the interim government reformed the country’s primary oil law to attract foreign investment. According to the Secretary, 150 million barrels of Venezuelan oil have been sold since January 3, with production increasing by 25%.
On April 13, Chevron signed two agreements in Venezuela, including an asset exchange that adds a heavy oil production zone to its main project while returning an offshore gas block and an oil production area.
Military Operations Involving Israel and the US Against Iran
On February 28, Israel conducted an attack on the Iranian capital, Tehran. Subsequently, President Trump announced that US military forces had initiated a “major combat operation” against Iran to address what he described as “imminent threats from the Iranian regime.” He accused Iranian authorities of “financing and training” militants in Syria, Lebanon, Iraq, and Palestine’s Hamas.
The Iranian Revolutionary Guard Corps (IRGC) claimed to have launched missiles and drones towards Israel and attacked US military bases in Qatar, Saudi Arabia, and the United Arab Emirates.
The European Union reaffirmed its “steadfast commitment to ensuring regional security and stability” in the Middle East.
Ukrainian President Volodymyr Zelensky remarked on the need to provide Iranians with a chance to rid themselves of a “terrorist regime” and ensure safety for all nations affected by attacks from Iran.
On February 28, Trump claimed that Iran’s Supreme Leader Ali Khamenei was dead, a statement later confirmed by the Islamic Republic News Agency (IRNA).
On March 1, the IRGC announced the commencement of “the most destructive offensive operation in the history of the Islamic Republic” against Israel and “American terrorist bases.” Trump urged the Iranian regime to abandon these plans and threatened a “very strong response.”
On March 6, Trump called for a complete change of leadership in Iran, stating he had several candidates in mind for a “good leader.” On March 8, Iran’s Experts Assembly elected the son of the slain Ayatollah Ali Khamenei, Mojtaba Khamenei, as the third Supreme Leader of the Islamic Republic.
On March 26, Trump announced a suspension of the destruction of Iranian energy facilities until April 6. However, due to a lack of progress in negotiations, he extended the deadline by 20 hours to the evening of April 7.
Trump threatened to destroy all bridges and power plants in Iran and take other actions that would have devastating consequences for the Iranian people, potentially provoking a dangerous response across the region.
On April 6, Iran presented the US and Israel with a separate 10-point plan for ending the war through Pakistan.
On April 7, Trump indicated he had agreed to postpone bombings of Iran and delay a “devastating attack” for two weeks, contingent on the Strait of Hormuz being reopened. He stated that the ceasefire would be mutual and that Iran’s 10-point proposal was an acceptable basis for negotiations.
Iranian Foreign Minister Abbas Araghchi stated that safe passage through the Strait of Hormuz within two weeks is possible “with coordination with Iran’s armed forces and considering technical limitations.”
On April 11, negotiations took place in Pakistan between representatives of Iran and the US. They did not reach an agreement on a ceasefire, as JD Vance reported that Iran refused to close its nuclear program.
Following these discussions, Trump announced that US naval forces would begin a blockade of the Strait of Hormuz. He stated that the US Navy would intercept all vessels that had paid Iran for passage through the Strait. He also warned that if Iranian forces attacked American naval ships, the US Navy would respond decisively.
The US Central Command announced that American forces would start blocking all maritime traffic to and from Iranian ports on April 13 at 10:00 AM Eastern Time (5:00 PM Kyiv time).
US Energy Secretary Chris Wright forecasts a peak in oil prices in the coming weeks due to shipping disruptions in the Strait of Hormuz. Concurrently, military tensions between the US and Iran escalate, impacting regional stability and energy markets.
Source: Reuters