Oil prices extended gains for a fifth consecutive day — the longest rally since January — as faltering talks between the US and Iran heightened fears of prolonged supply disruptions in the Persian Gulf. Brent crude for June settlement rose 1.1% to $106.20 a barrel, pushing weekly gains to about 17%, while WTI for June delivery climbed 0.96% to $96.77, holding near the $97 mark.
Markets remain on edge as US President Donald Trump continues to back a naval blockade of Iranian ports, a move seen as a key sticking point in negotiations. Recent statements and social media posts from Trump — including warnings of military action against vessels in the Strait of Hormuz — have further dampened prospects for a breakthrough. Reports also indicate US forces boarded a supertanker carrying Iranian oil, signalling an intensification of enforcement actions.
The Strait of Hormuz, a vital artery for global energy flows, remains largely paralysed. Shipping activity has slowed to a trickle, with only sporadic movement of Iran-linked vessels.
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The near-freeze in transit has sharply curtailed exports from major Gulf producers, reinforcing supply concerns and driving a significant geopolitical risk premium into oil prices.
Attempts to revive negotiations — including backchannel efforts via Pakistan — appear to have stalled. Key sticking points remain unresolved, including Iran's nuclear programme and broader regional tensions such as Israeli military activity in Lebanon.
While a ceasefire in Lebanon has been extended, it has done little to ease the broader geopolitical overhang impacting energy markets. Since the conflict began in late February, oil markets have been increasingly driven by headline risk. The combination of stalled diplomacy, military escalation, and constrained shipping flows has created a highly volatile pricing environment.
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