Oil Surges — Brent +6.3% to $96, WTI +7% to $88.3 — as Touska Seizure Shatters Ceasefire Hope

Global oil markets spiked sharply on April 20 after the USS Spruance's seizure of the MV Touska and Iran's announcement that it was withdrawing from second-round Islamabad talks. Brent crude surged 6.3% to $96/barrel; WTI climbed 7% to $88.3/barrel. The previous week had seen a brief 9-11% price drop when Iran temporarily reopened the Strait on April 17, but the Hormuz closure resumed April 18 and now the Touska seizure removed most remaining hopes for a deal before the April 22 ceasefire expiration. Indonesian tankers cancelled exit plans after the strait closure. US Energy Secretary Chris Wright warned gas prices may not fall below $3/gallon until 2027. Xi Jinping of China publicly called for the Strait of Hormuz to remain open to normal navigation, citing economic impacts on Asian nations.