Global oil prices continued to rise after US President Donald Trump's decision to extend the truce with Iran while maintaining the blockade of the Strait of Hormuz. This was reported by Bloomberg, writes UNN.
Details
West Texas Intermediate oil prices remain at around $90 per barrel after an almost 10% increase in the previous two days. Brent is trading below $99.
Trump stated that the US would refrain from new strikes on Iran but would continue to block vessels associated with it until negotiations are concluded.
Market in tension
The situation in the Persian Gulf and the de facto halt of shipping through the Strait of Hormuz, through which about 20% of global oil supplies usually pass, caused a sharp increase in volatility – to highs since 2020.
Disputes over the truce, the blockade, and Iran's role keep markets on edge, but the reality is that flows remain constrained
According to Iranian media, Tehran will not open the strait as long as the US Navy intercepts vessels. If necessary, Iran is ready to break the blockade by force.
Brent prices briefly exceeded $100 per barrel amid news of a possible breakdown in diplomatic contacts, but later fell after Trump's statements about extending the truce.