TLDR
- Crude oil prices climbed past $105 per barrel Thursday following heightened conflict in the Strait of Hormuz
- Iranian Revolutionary Guard forces targeted three commercial vessels in the strategic waterway Wednesday
- Brent crude closed above $100 per barrel for the first time since ceasefire implementation
- Washington extended its ceasefire agreement while maintaining naval restrictions on Iranian port access
- Diplomatic negotiations between Washington and Tehran have reached an impasse with no scheduled discussions
Global crude oil markets surged past $105 per barrel Thursday following renewed hostilities in the Strait of Hormuz, occurring mere hours after Washington announced an extension of its ceasefire arrangement with Tehran.
The Islamic Revolutionary Guard Corps of Iran launched operations against three merchant vessels traversing the strait Wednesday. These military actions occurred shortly following President Donald Trump’s declaration that the April 7 truce would continue without a specified end date.
Brent crude benchmarks climbed 1.4% to reach $103.36 per barrel during early Thursday trading. West Texas Intermediate benchmarks similarly advanced 1.4%, touching $92.96. Brent had surged as high as 4.2% during earlier trading before retreating following unverified reports of explosions 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. Following the outbreak of hostilities in late February, the near-complete closure of this critical shipping channel has significantly reduced crude exports from key Persian Gulf nations.
Washington has sustained naval restrictions on maritime traffic accessing Iranian ports. Tehran’s Foreign Minister Abbas Araghchi characterized these restrictions as violations of ceasefire terms.
Shipping activity through the strait virtually ceased Thursday. Observers noted only a single bulk carrier navigating the waterway.
Diplomatic Impasse Continues
The United States and Iran remain gridlocked over multiple contentious matters, including Tehran’s nuclear development program and Israel’s military operations in Lebanon.
Iranian President Masoud Pezeshkian expressed openness to diplomatic engagement while identifying the “blockade and threats” as primary barriers to productive negotiations. Tehran has indicated no immediate plans to participate in diplomatic discussions.
International mediators continue efforts to arrange peace negotiations as soon as Friday, according to Wall Street Journal reporting. However, no confirmed meeting schedule 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.
Extended Supply Constraints Impact Global Markets
Brent benchmarks have advanced nearly 13% across just the previous three trading sessions. Market analysts indicate pricing mechanisms are increasingly accounting for prolonged disruptions rather than swift diplomatic 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 inventory data released Wednesday by the Energy Information Administration revealed drawdowns across all primary refined product segments.
Global markets have increasingly relied upon American supplies to compensate for Middle Eastern supply disruptions. This heightened demand drove combined US crude and fuel exports to unprecedented levels, according to agency data.
Thursday observations confirmed minimal shipping activity in the Strait of Hormuz, with just one vessel transiting and no ships observed entering the strategic passage.
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