Crude Oil Climbs Above $105 Amid Strait of Hormuz Attacks and Diplomatic Deadlock

Table of Contents Crude oil valuations surged past the $105 per barrel threshold on Thursday as hostilities reignited in the Strait of Hormuz, mere hours following Washington’s announcement to prolong its ceasefire arrangement with Tehran. The Islamic Revolutionary Guard Corps of Iran launched strikes against three merchant vessels navigating the strait on Wednesday. These attacks occurred shortly following President Donald Trump’s declaration that the April 7 truce would remain operational without a specified end date. Brent crude contracts advanced 1.4% to reach $103.36 per barrel during early Thursday trading. West Texas Intermediate contracts similarly climbed 1.4%, touching $92.96. Brent had experienced a surge as high as 4.2% during the trading session before retracting following unverified accounts 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 one-fifth of global petroleum supplies transit through the Strait of Hormuz. Following the outbreak of hostilities in late February, the near-complete shutdown of this critical passage has severely restricted petroleum shipments from principal Gulf region exporters. Washington has sustained naval blockade operations targeting vessels departing from and arriving at Iranian harbors. Tehran’s Foreign Minister Abbas Araghchi characterized the blockade as a breach of the ceasefire terms. Vessel movement through the strait essentially halted on Thursday. Observers reported only a single bulk transport ship navigating the waterway. The United States and Iran remain at loggerheads over multiple contentious matters, encompassing Tehran’s atomic energy program and Israel’s military operations in Lebanese territory. Iran’s President Masoud Pezeshkian expressed openness to diplomatic engagement but identified the “blockade and threats” as primary impediments to constructive dialogue. Iranian officials indicate no immediate intention to participate in negotiation sessions. International intermediaries continue advocating for diplomatic discussions as soon as Friday, per Wall Street Journal reporting. However, no official confirmation of such meetings has emerged. “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. Brent has climbed nearly 13% across just the previous three trading sessions. Market observers suggest traders are increasingly factoring in an extended disruption rather than anticipating rapid 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.” American petroleum stockpile figures released Wednesday through the Energy Information Administration revealed reductions throughout all primary refined product segments. Global markets have increasingly depended on American supplies to compensate for Middle Eastern shortfalls. This elevated demand propelled aggregate US petroleum and fuel shipments abroad to unprecedented levels, according to agency data. On Thursday, maritime tracking identified just one vessel crossing the Strait of Hormuz, with zero ships documented entering the passage. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.