Hormuz Closure Reversed, Global Oil Markets in Turmoil

Iran re-closed the Strait of Hormuz to most commercial traffic on Saturday, April 18, just hours after a brief opening, reigniting uncertainty for global oil markets. According to OilPrice.com, Iran's Islamic Revolutionary Guard Corps declared the strait is now under the "strict management and control of the armed forces," directly contradicting a claim from U.S. President Donald Trump that the chokepoint was open.

The reversal came after Trump stated the American naval blockade of Iranian ports "will remain in full force." Iran has conditioned the strait's opening on the lifting of that blockade, which the U.S. imposed on April 13. The Strait of Hormuz handles roughly 20% of global oil supply, or about 20 million barrels per day.

Oil markets had sharply priced in the opening on Friday, with Brent crude falling roughly 9.5% to around $89.89 and WTI sliding more than 10% to $84.89. OilPrice.com reports those moves are likely to reverse when markets reopen. On the water, the situation is confused, with some vessels transiting while several oil tankers turned back in the Persian Gulf after attempting passage.

U.S. Drought Threatens Agriculture, Could Impact Energy Demand A separate report from OilPrice.com highlights a severe drought gripping the United States as the spring planting season begins. As of early April, 60% of the Lower 48 is in drought, according to NOAA. The drought is pressuring key crops like wheat in the Great Plains and is complicating matters for ranchers, with the U.S. cattle herd already at its lowest level since the 1950s.

For Bakken operators, widespread drought can influence regional economic activity and potentially affect demand for diesel used in agriculture and transportation. Water cutbacks for agriculture are also being discussed in areas like Washington's Yakima Basin and along the Colorado River due to shrinking mountain snowpack.

White House Sets 2028 Goal for Lunar Nuclear Reactor In other news, the Trump administration has directed NASA, the Pentagon, and the Department of Energy to develop a nuclear system capable of orbiting the moon, with a goal to be launch-ready by 2028. OilPrice.com reported the plan, issued on April 14, aims to support a permanent lunar base. The administration views nuclear fission as the only feasible power solution for long lunar nights, which last 14 Earth days.

While a long-term and specialized endeavor, the push for space-based nuclear power underscores continued federal investment in advanced energy technologies, though the immediate relevance to Bakken oil production is limited.

For North Dakota, the immediate focus remains the volatile situation at the Strait of Hormuz. The sudden re-closure underscores the fragility of global supply and sets the stage for another week of significant price swings, directly impacting Bakken crude realizations.