Oil ticks up as Trump reinforces Hormuz blockade
Brent crude is nearing $100/bbl, as US President Donald Trump doubles down on the US naval blockade of the Strait of Hormuz, against a backdrop of potential ceasefire talk.
IMAGE: Strait of Hormuz. Getty Images
Oil prices have moved higher despite Trump announcing an indefinite extension of the ceasefire to allow further negotiations, as the Middle East conflict enters its second month.
Trump extended the ceasefire but made clear that the US Navy will keep its blockade of the Strait of Hormuz in place – a move Tehran has labelled an act of war.
“We believe markets are underpricing the ongoing supply disruption. Optimism appears to be clouding the reality of the supply shock,” two analysts from ING Bank noted.
Meanwhile, Iran’s military has rejected the ceasefire extension, Reuters reported citing Iran’s state-controlled Tasnim News Agency.
“We do not accept negotiations under the shadow of threats,” Iran's speaker of parliament Mohammad Baqer Qalibaf said on social media platform X.
In other news, an Iran-linked very large crude carrier (VLCC) has delivered about 2 million bbls of crude oil via ship-to-ship transfer, according to vessel monitoring data by TankerTrackers.com.
The vessel departed Iran in late March and travelled to the Riau Archipelago in Indonesia where it offloaded the oil. It is enroute to return to Iran’s Kharg Island via the Strait of Hormuz, despite the US blockade, TankerTrackers.com reported.
By Aparupa Mazumder
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