Oil prices surge above $106 on Hormuz crisis

Oil prices surged above $106 per barrel amid rising tensions between the United States and Iran in the Strait of Hormuz, following tit-for-tat seizures of commercial vessels by Washington and Tehran.

Brent crude, the international benchmark, climbed past $106 per barrel early Friday, News.Az reports, citing Al Jazeera.

Prices reached $106.80 as of 01:00 GMT, marking an increase of nearly 5 percent from Wednesday’s close, when oil had already crossed the $100 threshold for the first time in two weeks.

U.S. markets reacted negatively to the developments, with the S&P 500 falling 0.41 percent and the Nasdaq Composite declining 0.89 percent overnight.

Shipping activity in the Strait of Hormuz — a critical chokepoint that typically handles about one-fifth of global oil and natural gas flows — has effectively halted. Iran insists on controlling which vessels can pass through the strait, while the United States has moved to block Iranian maritime trade.

Donald Trump said in a Truth Social post on Thursday that he had ordered the U.S. Navy to destroy any Iranian boats deploying mines in the strait. His remarks followed a Pentagon announcement that U.S. forces had seized a tanker carrying sanctioned Iranian oil for the second time in under a week.

Trump also suggested a broader naval blockade, stating that no ship “can enter or leave” the strait without U.S. Navy approval. “It is ‘Sealed up Tight,’ until such time as Iran is able to make a DEAL!!!” he wrote.

The Islamic Revolutionary Guard Corps (IRGC) said it had seized the Panamanian-flagged MSC Francesca and the Greek-owned Epaminondas, alleging the vessels had endangered maritime security by operating without proper permits and interfering with navigation systems.

However, Greek Maritime Affairs and Insular Policy Ministry denied that the Epaminondas had been captured, stating that the ship remains under the control of its captain.

According to maritime intelligence platform Windward, only nine commercial vessels passed through the strait on Wednesday, compared with seven on Tuesday and 15 on Monday.

Before the escalation of hostilities — including the conflict launched by the United States and Israel against Iran on February 28 — the waterway averaged 129 daily transits, according to United Nations Trade and Development.

News.Az 

By Nijat Babayev