President Donald Trump's national address on the ongoing U.S. war against Iran has sent oil prices soaring, as the market braces for a prolonged conflict and the potential closure of the Strait of Hormuz, a critical route for global oil shipments [1]. Trump vowed to continue the war for weeks and promised to hit Iran 'extremely hard,' with no clear exit strategy or plan to reopen the Strait, which Iran has effectively shut down with attacks on tankers [1]. Analysts estimate the oil market faces the loss of more than 600 million barrels of oil and refined products, with Rapidan Energy forecasting a total net loss of 630 million barrels by the end of June after accounting for redirected flows and emergency stockpile releases [1]. Ryan McKay of TD Securities projects nearly 1 billion barrels lost by the end of April, including up to 600 million barrels of crude oil and 350 million barrels of refined products, with an additional combined loss of 450 million barrels for each month the war continues [1]. U.S. crude oil prices have jumped more than 10% to over $110 per barrel, while Brent prices rose more than 6% to top $107 [1][2]. Buyers in Houston are paying nearly $120 per barrel, a premium of about $5.50 over the May futures contract [1]. John Kilduff of Again Capital described Trump's speech as 'a disaster,' noting the market is rapidly pricing in the impact of a prolonged war and closure of the Strait of Hormuz [1].
The surge in oil prices has prompted Amazon to implement a 3.5% fuel and logistics surcharge for third-party sellers in the U.S. and Canada, effective April 17 [2]. Amazon cited elevated fulfillment and logistics costs across the industry, stating it had absorbed these increases until now but would follow other major carriers in imposing temporary surcharges to recover a portion of the actual cost increases [2]. According to Amazon spokesperson Ashley Vanicek, the surcharge is 'meaningfully lower' than those applied by other carriers, and the company remains committed to supporting its selling partners and maintaining broad selection and low prices for customers [2]. The surcharge will be calculated based on sellers' fulfillment fees, not the sale price, and averages an additional 17 cents per unit for Fulfillment by Amazon shipments, varying by item size and dimensions [2]. Amazon hosts about 2 million sellers on its marketplace, and most use FBA as their fulfillment method [2].
Other companies are also responding to the spike in oil prices. The U.S. Postal Service announced plans to impose a fuel surcharge on packages starting April 26, and major carriers UPS and FedEx have raised their fuel surcharges since the start of the Iran war [2].
The closure of the Strait of Hormuz has significant implications for global energy supplies, as about 20% of global oil passed through the waterway before the conflict [1]. Trump stated that the U.S. imports almost no oil through the Strait and will not do so in the future, emphasizing that other countries reliant on Hormuz must secure their own passage [1].
CONCLUSION
Trump's commitment to a prolonged conflict with Iran and the effective closure of the Strait of Hormuz have triggered a sharp rise in oil prices, leading to widespread disruptions in energy supply chains. Amazon and other major logistics providers are responding with new fuel surcharges, signaling broader inflationary pressures across industries. The market is bracing for continued volatility as the war persists and supply losses mount.