- Oil prices rose for the fourth consecutive session amid US-Iran tensions and Strait of Hormuz disruptions
- Brent crude stayed near $106 per barrel, while WTI traded around $97 amid supply concerns
- US naval blockade targets Iranian-linked ships, while Iran restricts Strait of Hormuz traffic
Oil prices extended gains for a fourth straight session as tensions between the US and Iran intensified, with no breakthrough in peace negotiations and continued disruption in the Strait of Hormuz. Brent crude hovered near $106 a barrel, while US West Texas Intermediate (WTI) traded around $97, reflecting sustained supply concerns.
The ongoing standoff has severely disrupted flows through Hormuz — a key artery for global energy trade. The US has maintained a naval blockade on ships linked to Iran, aiming to increase pressure on Tehran. Iran, however, has kept the strait largely shut to international traffic and escalated tensions, with reports of gunboats firing on commercial vessels. The near-closure has sharply reduced exports from major producers in the Persian Gulf, amplifying supply fears.
Iran's Foreign Minister Abbas Araghchi has called the blockade a violation of the ceasefire, showing the fragile nature of the current truce. Diplomatic efforts appear to have stalled. US President Donald Trump said the ceasefire agreed earlier this month would remain in place indefinitely, as Washington awaits a fresh proposal from Iran.
ALSO READ: Oil Bears Go All-In: $430-Million Shorts Placed Before Trump's Iran Ceasefire Extension
Tehran, however, has indicated no immediate plans to return to negotiations. Iranian President Masoud Pezeshkian stated that while dialogue is welcome, ongoing blockades and threats remain key obstacles. Key sticking points — including Iran's nuclear programme and regional conflicts such as Israel's involvement in Lebanon — continue to complicate any resolution.
Amid the geopolitical turmoil, US supply data offered some counterbalance. Figures from the Energy Information Administration showed declines across major refined product categories, signalling strong demand. The US has been increasingly relied upon to offset Middle East disruptions, with oil and fuel exports climbing to record levels.
Despite steady gains, oil markets remain highly reactive to developments in the Gulf. The combination of a fragile ceasefire, stalled diplomacy and constrained shipping flows suggests volatility is likely to persist.
ALSO READ: India-Bound Ship Among Two Seized By Iran's IRGC Near Hormuz
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