Brent Oil Rises Above $100 as Iran Seizes Ships and Tensions Escalate in Strait of Hormuz
Global oil prices surged on Wednesday after Iran announced it had seized two container ships in the strategically vital Strait of Hormuz, further intensifying tensions in an already volatile energy market.
International benchmark Brent crude rose more than 2% to $100.91 per barrel, while U.S. West Texas Intermediate (WTI) climbed to $91.81 per barrel.
Ship Seizures Heighten Market Anxiety
Iran’s Revolutionary Guard said it had intercepted two vessels attempting to pass through the Strait of Hormuz “without authorization,” according to state media reports.
The Strait of Hormuz is one of the world’s most critical oil transit routes, and any disruption there immediately impacts global energy prices and supply stability.
U.S. Extends Ceasefire but Maintains Pressure
The price spike came shortly after U.S. President Donald Trump announced an extension of the temporary ceasefire with Iran.
Trump said the truce would remain in place beyond its initial deadline as long as Iran’s leadership fails to present a unified proposal to end hostilities with the United States and Israel.
Despite the extension, the U.S. confirmed it would continue its naval blockade of Iranian ports, adding further uncertainty to the situation.
Markets React to Uncertainty
Analysts say mixed signals from Washington, combined with ongoing regional tensions, are keeping energy markets volatile.
Russ Mould, investment director at AJ Bell, said investors are “still playing a guessing game” due to unclear diplomatic progress and continued geopolitical risks.
He noted that additional incidents, including reported attacks near Oman and uncertainty over upcoming talks, have further clouded the outlook.
“Oil prices have moved above the $100 mark, reflecting distress in global energy markets,” Mould said.
Outlook Remains Fragile
While the ceasefire extension has temporarily reduced the risk of immediate escalation, analysts warn that the situation remains fragile.
Any disruption to shipping through the Strait of Hormuz could have significant consequences for global energy supplies and inflation pressures worldwide.
