Oil markets jolted higher Thursday as geopolitical tensions in the Strait of Hormuz escalated, with Iran and the US both asserting control over one of the world’s most critical energy chokepoints.
West Texas Intermediate futures climbed nearly 4 percent to around USD96.50 per barrel, while Brent crude rose more than 3 percent to above USD105. Dubai crude, a key benchmark for Asian markets, edged up 1 percent to nearly USD103.
The gains followed reports that Iran’s Islamic Revolutionary Guard Corps Navy seized two vessels in the strait for allegedly “violating protocols.” The move came alongside a stark warning from US President Donald Trump, who said he had ordered the US Navy to take lethal action against any boats deploying mines in the waterway.
Both nations are now effectively demanding authority over transit. Iran insists ships must secure its approval to pass, while Trump claims the US maintains “total control” and requires clearance from its navy. The competing directives have deepened uncertainty for global shipping firms and insurers.
The US blockade of Iranian ports, in force since April 13, has already reduced tanker traffic through the strait to a trickle. Recent seizures on both sides have compounded risks, even as a fragile ceasefire nominally holds.
Broader regional tensions are also feeding market anxiety. Signals of potential renewed conflict involving Israel and internal political shifts within Iran add further instability to an already volatile supply outlook.
Any sustained disruption in the Strait of Hormuz, through which roughly a fifth of global oil flows, could push prices sharply higher in the near term.
