New York (TDI): Global oil prices jumped sharply on Thursday after Iran signalled it would not reopen the Strait of Hormuz while a US naval blockade remains in place, despite an ongoing ceasefire extension.
At around 8:25am, US benchmark West Texas Intermediate rose 4.06% to $96.73 per barrel, while international benchmark Brent Crude climbed 3.62% to $105.63, before easing slightly later in trading.
Oil markets have remained volatile since the conflict involving the United States and Israel against Iran began in late February, with uncertainty over a potential resumption of hostilities continuing to drive price fluctuations. The closure of the Strait, through which roughly one-fifth of global oil and LNG supplies pass, has intensified supply concerns.
Despite geopolitical tensions, financial markets showed resilience. Wall Street stocks advanced after US President Donald Trump extended the ceasefire to allow more time for negotiations. Major indices, including the S&P 500 and the Nasdaq Composite, reached record closing highs, supported by strong performance in technology shares.
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Analysts noted that investors remain cautiously optimistic that the Strait of Hormuz will eventually reopen before causing long-term damage to the global economy. However, concerns persist that prolonged high energy prices could impact corporate earnings and consumer spending.
Meanwhile, Iran’s Revolutionary Guards reportedly seized two vessels in the region for alleged maritime violations, underscoring the fragile security environment. The ongoing tensions continue to pose risks to global energy markets and trade flows.
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In broader markets, the US dollar edged higher amid uncertainty, while safe-haven assets like gold gained. Cryptocurrencies also rose, with Bitcoin and Ethereum posting notable gains.
Market experts warn that while financial systems have so far absorbed the shock, sustained disruption in energy supplies could have wider implications for global growth if the situation escalates further.
