Global oil benchmarks rebounded, erasing earlier losses as tensions escalated in the strategic waterway. Brent crude climbed 0.7% to $99.21 a barrel by 1049 GMT, while U.S. West Texas Intermediate rose 0.7% to $90.26, extending gains from the previous session.
At least three container ships were struck by gunfire in the Strait of Hormuz, according to reports. Iran’s Revolutionary Guards Navy also seized two vessels over alleged maritime violations, transferring them to Iranian territory, the semi-official Tasnim news agency said.
The Strait of Hormuz, a critical chokepoint for global energy trade, had previously handled about 20% of worldwide oil and liquefied natural gas shipments before the conflict intensified earlier this year.
Geopolitical uncertainty deepened after US President Donald Trump announced an indefinite extension of a ceasefire with Iran just hours before its expiration. The move appeared unilateral, with no immediate confirmation from Iran or US ally Israel. Planned peace talks in Pakistan also failed to take place, further clouding prospects for de-escalation.
Elsewhere, Ukrainian President Volodymyr Zelenskiy said the Druzhba pipeline transporting Russian oil was ready to resume operations. However, industry sources indicated Russia may halt oil exports from Kazakhstan to Germany via the route starting May 1.
Market attention is also turning to upcoming US inventory data. Industry figures showed crude stockpiles fell by 4.5 million barrels last week, alongside declines in gasoline and distillate inventories. Analysts expect official data to confirm a 1.2 million-barrel draw.
Analysts say sustained inventory declines and strong export demand could signal tightening global supply, as buyers in Europe and Asia race to secure energy amid rising geopolitical risks.
Goodness Anunobi
