Brent crude futures rose 92 cents to $102.83 a barrel by 8:52 a.m. ET on Thursday as U.S.-Iran peace talks stalled and shipping restrictions persisted through the Strait of Hormuz.
West Texas Intermediate futures advanced 84 cents to $93.80 per barrel, extending gains from Wednesday when both benchmarks closed more than $3 higher following larger-than-expected U.S. Gasoline and distillate stock draws.
The price increase came despite marginally lower oil prices earlier in the session, as market focus shifted to ongoing transit limitations in the Strait of Hormuz, which normally carries about 20% of global oil and liquefied natural gas supplies.
Iran and U.S. Maintain shipping curbs despite ceasefire extension
Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its control over the strategic waterway, while the U.S. Maintained a naval blockade of Iran’s sea trade.
Iranian parliament speaker Mohammad Baqer Qalibaf said a full ceasefire only made sense if the U.S. Lifted its blockade, even as President Donald Trump extended the ceasefire following Pakistani mediation efforts.
For more on this story, see Stocks slip as U.S.-Iran ceasefire doubts rise, oil jumps on Strait of Hormuz fears.
Trump pulled back at the last moment from warnings to bomb Iran’s power plants and bridges, with White House press secretary Karoline Leavitt confirming no end date has been set for the extended ceasefire.
U.S. Military intercepts Iranian tankers in Asian waters
The U.S. Military intercepted at least three Iranian-flagged tankers in Asian waters on Wednesday and redirected them away from positions near India, Malaysia, and Sri Lanka, according to shipping and security sources.
These actions contributed to sustained upward pressure on oil prices despite record U.S. Crude exports, which climbed by 137,000 barrels per day to 12.88 million bpd as Asian and European buyers sought alternatives to Hormuz-linked supplies.
This follows our earlier report, Trump to Block Strait of Hormuz After Failed Iran Talks.
U.S. Crude stocks rose by 1.9 million barrels, exceeding expectations for a 1.2 million-barrel draw, while gasoline inventories fell by 4.6 million barrels and distillate stocks dropped by 3.4 million barrels — both deeper than forecasted declines.
Why are oil prices rising despite increased U.S. Exports?
Prices are rising as geopolitical tensions in the Strait of Hormuz are limiting global supply flows, outweighing the impact of record U.S. Export volumes that are redirecting cargoes to Asia and Europe.
What happens if the Strait of Hormuz remains closed?
Prolonged restrictions could preserve upward pressure on Brent and WTI prices, especially if global inventories continue to tighten and alternative shipping routes remain constrained by naval intercepts and insurance risks.
