Skip to content
Crude Signal
Posts

Week 14: Oil Crosses $100 as Hormuz Blockade Reshapes Global Supply

Weekly Briefing · Week 14 · Hormuz Blockade Day 31
Bad Week · 2.1 / 10

The Iran-Hormuz blockade has triggered the largest oil supply disruption in modern history, and the shockwave is hitting every market. Oil, metals, and freight are at or near 52-week highs. Currencies are shifting. Crypto is falling inverse. Here's what you need to know.

Direction & Timing
Oil
Leading. Moves first
Metals
Tariff floor +
smelter attacks
Currencies
Dollar steady.
Peso, pound shifting
Freight
Cape rerouting.
+150% since blockade

Leading indicators (oil, crypto, VIX, currencies) move first. Lagging (metals, freight) follow in 2–4 weeks.

Stability
1.8
Chaotic
Cost Pressure
2.4
Severe
Blockade
Day 31
Hormuz closed
Price Reference Table
MaterialPrice8-Week ChangeNote
WTI Crude$102.85/bbl+43%Hormuz blockade
Brent Crude$115.35/bbl+38%Spread at $12.50 (crisis)
Diesel$5.37/gal+40%Highest since Jul 2022
Natural Gas$3.10/MMBtu+8%Energy input
Gold$4,557/oz−3%Safe haven selling
Copper$4.85/lb+8%Supply disruption + demand
Aluminum~$2.50/lb+36%LME + MW premium, record
Steel (CRC)~$540/s.ton−4%Only metal easing
Dollar (DXY)100.54+0.2%Safe haven demand
Mex. Peso17.82/USD−2.1%Weakening on oil volatility
British Pound$1.268−1.4%Risk-off pressure
Container Freight$2,279/40ft+19%Cape rerouting
Trucking$2.47/mile+2.5%7th monthly gain
Bitcoin~$67,700−14%Inverse oil correlation
Ethereum~$2,071−9%Inverse oil correlation
The Hormuz Correlation · 8-Week % Change Across Markets

This chart shows how the Hormuz blockade is rippling across every market. Energy, metals, freight, and crypto all moving from the same trigger. Solid lines surge upward (oil, diesel, aluminum, copper, freight). Dashed lines fall (crypto, currencies). When the lines diverge at the conflict marker, that's the blockade reshaping prices in real time.

+40% +30% +10% 0% −10% −20% −30% W5 W6 W7 W8 W9 W10 W11 W14 Iran conflict begins Oil +43% Diesel +40% Aluminum +36% Freight +19% Copper +8% DXY 0% Gold −3% ETH −9% BTC −14% SOL −22%
Oil
Diesel
Aluminum
Freight
Copper
Gold
Bitcoin
Ethereum
Solana

The key takeaway: Oil, diesel, aluminum, copper, and freight are all moving in lockstep, driven by the Hormuz blockade. Freight (+19%) lags oil slightly because rerouting takes time. Crypto moves in the opposite direction. The dollar is steady on safe-haven demand while the peso and pound weaken. If the blockade ends, the top lines drop and the bottom lines rebound.

8-Week Change
Aluminum
+36%
Oil
+15.1%
Diesel
+14.8%
Nat Gas
+5.0%
Freight
+19%
Copper
+8%
Gasoline
+2.6%
Peso
−2.1%
Pound
−1.4%
Gold
−3%
BTC
−14%
SOL
−22%

Sorted by magnitude. Red = rising. Green = falling.

Material Breakdown
Oil & Energy ↑ +15.1% this week
WTI Crude $102.85/barrel Brent $115.35/barrel Diesel $5.37/gallon Natural Gas $3.10/MMBtu Gasoline $3.98/gallon
$12.50
Brent-WTI spread, the gap between international and US oil prices. When this number is above $10, it signals a global supply crisis. Normal is $3–5. We're at crisis level.
52-week low95th percentile, near the highest price this year

What happened: The Hormuz blockade has removed roughly 20 million barrels per day from global oil supply since February 28. Only 21 tankers have passed through the strait since then, compared to 100+ per day before the conflict. The IEA released 400 million barrels from emergency reserves in response.

Why it matters for the supply chain: Oil is the upstream input for almost everything. Diesel, the fuel that moves freight, has surged to $5.37/gallon, up 40% in 8 weeks and the highest since July 2022. Every mile of trucking and every container shipped just got significantly more expensive. Gasoline is up $1.02 this month alone.

What to watch: Analysts at Goldman Sachs and Macquarie have flagged a mid-April supply cliff, the point where emergency reserves run out if the blockade continues. That's roughly 14 days away. If it hits, expect another sharp move upward in oil and everything connected to it.

Metals ↑ Record highs
Gold $4,557/oz Copper $4.85/lb Aluminum ~$2.50/lb all-in Steel (CRC) ~$540/short ton
~$1/lb
Midwest aluminum premium, the surcharge US buyers pay on top of global prices. This recently crossed $1/lb for the first time in history. Driven by 50% tariffs on Canadian aluminum + Gulf smelter attacks on March 28.
52-week low99th percentile

What happened: Aluminum is the headline. The 50% tariff (raised from 25% in June 2025) created a permanent price floor. Then on March 28, precision strikes hit major Gulf smelters producing ~3.2 million tons/year. LME spiked 5.5% to $3,492/MT. All-in US cost is now ~$2.50/lb.

Copper is up 8% as supply disruptions ripple beyond oil. Gold fell 3% despite the crisis, as investors sold positions to cover losses elsewhere. Steel is the one metal easing, at $540/short ton.

Currencies → Dollar steady, others weakening
Dollar (DXY) 100.54 Mexican Peso 17.82/USD British Pound $1.268

What happened: The US dollar is benefiting from safe-haven demand, holding steady at 100.54 on the DXY index. Meanwhile, emerging market and commodity-linked currencies are weakening. The Mexican peso dropped 2.1% as oil volatility increases uncertainty for Mexico's oil-dependent economy. The British pound fell 1.4% on broader risk-off sentiment across European markets.

Why currencies matter here: Oil is priced in dollars. A strong dollar makes oil imports more expensive for every other country, amplifying the inflationary impact of the Hormuz blockade beyond what the barrel price alone suggests.

Freight ↑ +19% container, +2.5% trucking
Container (40ft) $2,279 Trucking (van) $2.47/mile War risk surcharge $1,500–4,000/container
+10–14 days
Cape of Good Hope rerouting. All major carriers are diverting around Africa to avoid Hormuz. This adds 3,500–4,000 nautical miles and $300K–$600K in fuel per voyage. Strait traffic is down 90%.

What happened: Container shipping rates have surged 19% since the blockade began, hitting $2,279/40ft container. On top of base rate increases, carriers are imposing war risk surcharges of $1,500–$4,000 per container. Total cost increases on affected routes range from 125–180%.

Trucking: US domestic van rates have risen for 7 consecutive months, now at $2.47/mile (up 23% year-over-year). Diesel at $5.37/gallon is the primary driver. Every cent per gallon adds cost to every mile of freight in the supply chain.

Crypto ↓ −9 to −22% over 8 weeks
Bitcoin ~$67,700 Ethereum ~$2,071 Solana ~$83
Inverse
Oil goes up, crypto goes down. When the Iran conflict began on Feb 28, oil surged past $120 and $364 million in crypto was liquidated within 24 hours. Bitcoin dropped from ~$74K to ~$65K in a single session. This inverse correlation has held consistently through the crisis.

Why crypto is in this report: Crypto markets trade 24/7, including weekends when traditional markets are closed. During the first weekend of the conflict, crypto was the only market pricing the news in real time, making it a leading indicator of how traditional markets would react on Monday. February 2026 saw $3.8 billion in Bitcoin ETF outflows, the worst month since spot ETFs launched.

The pattern: Bitcoin (−14%) and Ethereum (−9%) have been relatively resilient. Bloomberg called BTC an "oasis of calm" compared to equities by mid-March. Solana (−22%) fell harder, consistent with its higher volatility. When Trump briefly declared the war "complete" on March 9, BTC jumped back above $70K as oil crashed from $116 to $85, confirming the inverse link.

Strait of Hormuz · Latest Updates

View the live Hormuz tracker → Real-time vessel traffic, crisis metrics, and full timeline.

Day 31
The blockade is now in its 31st day. The IRGC formally closed the strait on March 27 to vessels transiting to or from US, Israeli, and allied ports. Only 21 tankers have passed through since February 28, compared to 100+ per day before the conflict.

Timeline of key events:

Feb 28US-Israel strikes on Iran. Oil surges past $120 in a single session. $364M in crypto liquidated.
Mar 4IRGC formally closes Hormuz to select vessels. Shipping insurance premiums jump from 0.15% to 5–10% of hull value.
Mar 9Trump declares war "complete." Oil crashes from $116 to $85. BTC jumps above $70K. Markets briefly celebrate.
Mar 11Supply chains tighten across Europe and North America as disruptions cascade.
Mar 19US begins military campaign to reopen strait. No resolution to date.
Mar 20Iran oil sanction waiver issued (General License U), temporary 30-day authorization to sell ~140M barrels of sanctioned crude. Band-aid, not a fix.
Mar 27IRGC extends closure to all vessels going to/from US/Israeli/allied ports. Near-total blockade.
Mar 28Gulf smelter attacks, precision strikes hit major aluminum facilities. LME spikes 5.5%. Houthis enter the war, launching missiles at Israel. US ground forces (Marines, 82nd Airborne) arrive in region.
Mar 30Today. IEA has released 400M barrels from emergency reserves, the largest drawdown in history. Goldman Sachs and Macquarie flag a mid-April supply cliff when reserves run out.
Risk
Geopolitical Critical · Day 31
  • Hormuz blockade, Day 31. Near-total closure since Feb 28
  • Conflict widening. Houthis entered Mar 28, US ground forces arriving
  • Supply cliff ~14 days. Emergency reserves exhausted mid-April
Trade Policy High
  • Trump-Xi summit starts tomorrow. Limited tariff relief expected
  • Section 301 investigations targeting 16+ economies for trade violations
  • 50% tariffs on steel & aluminum remain active, no rollback
  • Iran oil sanction waiver expires ~April 20. Non-renewal adds pressure
Economic Snapshot
S&P 500
6,378
↓1.8%, 5th straight decline
Factory Activity
52.4
Still growing (50 = breakeven)
Interest Rate
3.5%
Fed on hold
Consumer Confidence
53.3
2026 low
Dollar (DXY)
100.5
Steady
Fear Index (VIX)
30.6
Elevated (>20 = stressed)
Key Dates This Week
Mar 31Trump-Xi Beijing Summit begins. Any tariff changes will move material prices immediately.
Apr 1ISM Manufacturing PMI (March data). First reading reflecting a full month of the Iran conflict. A drop below 50 would signal economic contraction.
Apr 1Additional supply disruption takes effect. Commodity supply reduced at the start of peak demand season.
~Apr 5Possible US-Iran talks (Pakistan-hosted). A diplomatic breakthrough would likely cause a rapid reversal in oil and commodity prices.
~Apr 20Iran oil sanction waiver expires. If not renewed, another layer of supply pressure.
Mid-AprSupply cliff. Goldman Sachs and Macquarie estimate this is when emergency reserves run out if Hormuz stays blocked.
Week 14 drops next Monday
Get it in your inbox before the markets open. Free forever.
Subscribe Free
No spam. Unsubscribe anytime.

Share this post on:

Next issue
Week 15: Ceasefire or Escalation. Trump's Tuesday Deadline Defines Everything