Oil Continues to Rise Amid Rising Tensions Over the Strait of Hormuz

SadaNews - Oil prices have risen for the fourth consecutive day amid ongoing tensions between the United States and Iran over the Strait of Hormuz, following the failure of negotiations to hold a new round of peace talks.

Brent crude was trading near $104 per barrel after jumping about 13% in the last three sessions, while West Texas Intermediate was around $95.

U.S. President Donald Trump stated that the ceasefire agreed upon on April 7 would remain in effect indefinitely, while Washington awaits Iran to present a new peace proposal, although Tehran claims it has no plans to participate in negotiations at this time.

Brent crude surged by up to 4.2% early in the session before quickly retreating, amid unconfirmed reports of explosions in Iran.

The war has shaken energy markets since it began in late February, with the near-total closure of the Strait of Hormuz causing a sharp decline in flows from major producers in the Gulf.

The United States has maintained a maritime blockade on vessels heading to and from Iranian ports to pressure the regime, a move that Foreign Minister Abbas Araghchi described as a violation of the ceasefire.

Geopolitical Pressures Support Prices

Denis Kissler, Senior Vice President of Trading at "P.O.K. Financial Securities", stated that "tensions remain high, and with the United States and Iran currently at a near standoff regarding agreements, the inability of either side to back down will keep the path to rising prices easier". He added: "The longer oil does not flow through the strait, the higher the prices will rise."

Washington and Tehran remain at an impasse on several other key issues, including Iran’s nuclear capabilities and Israel’s invasion of Lebanon. Iranian President Masoud Pezeshkian noted in a statement that while he welcomes talks, "blockades and threats are major obstacles" to diplomacy.

Iran continues to keep the Strait of Hormuz closed to most other international traffic and its boats fired on commercial ships in the strait on Wednesday. Since the imposition of the U.S. maritime blockade earlier this month, U.S. forces have detained vessels and ordered dozens more to turn back.

Markets Await American Supplies

In a related context, traders monitored the U.S. oil inventory data released by the "Energy Information Administration" on Wednesday, which showed declines across all major refined product categories.

The world has been relying on U.S. supplies to compensate for disruptions in the Middle East, and this high demand has pushed total oil and fuel exports to a new record level, according to the agency.

Warren Patterson, Head of Commodity Strategy at "ING Group", stated that "the lack of progress in peace talks means that the hopes that the oil market had for a resolution will fade, pushing the market to increasingly price in the reality of supply disruptions".

He added: "While prices have been driven by news recently, the market will gradually become less affected by it if it turns out to be just transient news."