Oil Prices Climb Two Percent as Strait of Hormuz Disruptions
Oil prices rose around 2% on Thursday as ongoing uncertainty over a potential US-Iran ceasefire and continued disruption to shipping in the Strait of Hormuz unsettled global markets.
Brent crude futures were trading at about $104 per barrel at 1015 GMT, while West Texas Intermediate (WTI) climbed to roughly $95, both marking gains of more than 2% on the day.
Market analysts linked the increase to weakening expectations of a near-term diplomatic breakthrough, alongside persistent constraints on vessel traffic through the Strait of Hormuz, a key route for global energy transport. The US Energy Information Administration estimates that around one-fifth of global petroleum consumption passes through the waterway, heightening sensitivity to any disruption.
Sentiment was further influenced by reports from Iranian media suggesting that Tehran had received its first toll payment related to passage through the strait, a development that raised additional concerns about tighter control over maritime transit in the region.
Prices were also supported by renewed warnings from the International Energy Agency regarding the scale of the disruption. IEA Executive Director Fatih Birol described the situation as “the biggest energy security threat in history,” pointing to the combined impact of the Iran conflict and ongoing shipping restrictions.
Speaking at a conference in Singapore, Birol said global markets have already lost significant oil supply and are facing wider disruptions in critical commodities. He also highlighted downstream effects in Europe, noting that the region has traditionally relied heavily on Middle Eastern fuel imports, particularly jet fuel, and is now seeking alternative sources such as the United States and Nigeria.
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