Oil extends rally as US–Iran standoff chokes Hormuz
Oil prices rose for a fourth consecutive day as tensions between the United States and Iran escalated over control of the Strait of Hormuz following the collapse of efforts to restart peace talks.
Brent crude traded near $103 per barrel after climbing almost 13% over the previous three sessions, while West Texas Intermediate hovered around $94, News.Az reports, citing Bloomberg.
Global benchmarks initially spiked by as much as 4.2% before reversing gains amid unconfirmed reports of explosions in Iran.
US President Donald Trump said a ceasefire agreed on April 7 would remain in place indefinitely while Washington awaits a new Iranian peace proposal. Tehran, however, has indicated it has no immediate plans to engage in negotiations.
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The conflict has disrupted energy markets since late February, with disruptions in the Strait of Hormuz sharply reducing oil flows from key Gulf producers. The US has maintained a naval blockade on vessels traveling to and from Iranian ports, a move Iranian Foreign Minister Abbas Araghchi described as a violation of the ceasefire agreement.
Washington and Tehran remain deadlocked over several major issues, including Iran’s nuclear program and the conflict involving Israel and Lebanon. Iranian President Masoud Pezeshkian said he supports dialogue but warned that “blockade and threats are main obstacles” to diplomacy.
Iran has also restricted most international shipping through the Strait of Hormuz, with reports of Iranian gunboats firing on commercial vessels in the waterway on Wednesday. Since the US blockade was imposed earlier this month, American forces have reportedly intercepted and turned back multiple ships.
Maritime traffic through the Strait of Hormuz nearly came to a standstill on Thursday, with only one bulk carrier observed passing through and none entering the waterway.
In global energy markets, traders also monitored US inventory data released by the Energy Information Administration, which showed declines across all major refined products. The agency said increased demand for US crude, partly driven by Middle East supply disruptions, helped push total US oil and fuel exports to a record high.
By Nijat Babayev
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