TLDR
- Crude oil momentarily exceeded $105 per barrel Thursday amid heightened Strait of Hormuz tensions
- Iranian Revolutionary Guard forces struck three vessels in the strategic waterway Wednesday
- Brent crude closed above the $100 threshold for the first time since ceasefire implementation
- Washington prolonged its ceasefire agreement while maintaining naval restrictions on Iranian ports
- Diplomatic discussions between Washington and Tehran have reached an impasse with no future sessions planned
Crude oil values surged past the $105 per barrel mark Thursday following renewed hostilities in the Strait of Hormuz, occurring mere hours after Washington announced an extension to its ceasefire arrangement with Tehran.
The Islamic Revolutionary Guard Corps of Iran launched strikes against three merchant vessels navigating the strait Wednesday. These operations occurred shortly following President Donald Trump’s declaration that the April 7 truce would continue without a defined endpoint.
Brent crude contracts climbed 1.4% to reach $103.36 per barrel during early Thursday trading. West Texas Intermediate contracts similarly advanced 1.4%, touching $92.96. Brent had surged as high as 4.2% during the trading session before retreating following unverified reports of detonations within Iranian territory.
🚨JUST IN: Iran has reportedly attacked multiple commercial ships in the Strait of Hormuz, hours after President Trump announced a ceasefire extension, per NBC.
The IRGC reportedly fired on at least 3 vessels today.
One container ship sustained heavy damage.
Iran claims it… pic.twitter.com/jnND8aoQVs
— Coin Bureau (@coinbureau) April 23, 2026
Approximately 20% of global petroleum supplies transit through the Strait of Hormuz. Since hostilities commenced in late February, the near-complete closure of this critical passage has severely restricted crude shipments from primary Gulf region exporters.
Washington has continued enforcing a maritime blockade on vessels traveling to and departing from Iranian harbors. Iran’s Foreign Minister Abbas Araghchi characterized the blockade as breaching the ceasefire terms.
Movement through the strait virtually ceased Thursday. Observers noted only a single bulk carrier navigating through the passage.
Diplomatic Progress Frozen
The United States and Iran remain gridlocked over multiple contentious matters, including Tehran’s atomic energy program and Israel’s military operations in Lebanese territory.
Iranian President Masoud Pezeshkian expressed openness to diplomatic engagement but identified the “blockade and threats” as primary barriers to meaningful dialogue. Tehran has indicated no immediate intentions to participate in negotiation sessions.
According to the Wall Street Journal, intermediaries continue advocating for peace discussions potentially as soon as Friday. However, no confirmed meeting has been scheduled.
“Tensions are remaining high, and with the US and Iran currently at a stalemate, until somebody flinches, the path of least resistance for prices still looks higher,” said Dennis Kissler, senior vice president at BOK Financial Securities.
Supply Disruption Weighing on Markets
Brent has climbed approximately 13% across just the previous three trading sessions. Market analysts indicate traders are increasingly factoring in an extended disruption period rather than anticipating swift conflict resolution.
“The lack of progress in peace talks means that hopes the oil market had for a resolution will fade,” said Warren Patterson, head of commodities strategy at ING. “The market will gradually become numb to these headlines if they turn out to be just headlines.”
United States petroleum inventory figures released Wednesday by the Energy Information Administration revealed reductions throughout all primary refined product sectors.
Global markets have increasingly relied upon American supplies to compensate for Middle Eastern supply interruptions. This heightened demand elevated total US crude and fuel shipments to unprecedented levels, the agency reported.
Thursday observations confirmed just one vessel transiting the Strait of Hormuz, with zero vessels documented entering the waterway.
