Brent Crude Jumps to $115 Amid Extended Iran Blockade 📈

Global oil benchmarks surged on Wednesday following reports of an "extended" U.S. blockade on Iranian ports, directly impacting global energy costs and Sri Lanka's import bills. • Market Impact: Brent crude rose to approximately US$ 115 per barrel, up from Tuesday’s close of US$ 110. Prices remain significantly higher than pre-conflict levels, despite a brief dip to US$ 90 earlier this month. • Supply Chain Risks: The Strait of Hormuz, which handles roughly 20% of global oil and LNG supply, remains effectively closed. Iran has threatened to target vessels, while the U.S. is actively intercepting ships to squeeze the Iranian economy. • Macro-Economic Outlook: The World Bank warns of a 24% surge in energy prices for 2026 if disruptions persist. This poses a significant risk to Sri Lanka's foreign exchange reserves and fuel prices, potentially impacting the transportation and manufacturing sectors. • Financial Markets: European stocks (FTSE 100, Stoxx) fell by 0.4% to 0.76% as investors reacted to the escalation. Conversely, Asian markets showed a slight recovery, though analysts warn that a quick reopening of the Strait is unlikely. _Data based on reports from the Wall Street Journal and BBC Verify as of April 29, 2026._