Brent Crudes Above $103, Hormuz and Iran Risks Lift Oil Prices
Oil prices rose on Thursday (April 23), with Brent remaining above $103 per barrel as the market reassessed supply risks in the Middle East. Sentiment was supported by the lack of signs of progress in potential US-Iran talks and the disruption of shipping activity in the Strait of Hormuz following a series of attacks on ships this week.
Brent rose 1.9% to $103.82 per barrel, while WTI rose 2.0% to $94.83 per barrel at 5:48 a.m. ET (09:48 GMT). These gains extended Wednesday's surge, when prices re-surfaced above $100 per barrel amid escalating tensions in the region's key shipping lanes.
The main pressure came from the incident in the Strait of Hormuz, after Iran reportedly attacked three ships and seized two of them. Tehran described the action as a response to the United States' blockade of Iranian ports, raising concerns that the conflict could lead to more significant supply disruptions.
On the diplomatic front, the status of US-Iran peace talks remains unclear, despite President Donald Trump's indefinite extension of the two-week ceasefire earlier this week. Iran has refused to continue negotiations as long as the US naval blockade remains in place, while Trump has demanded that Iran reopen the Strait of Hormuz before any major deal can be signed, leaving both sides seemingly at an impasse.
ING believes the market "must repricing expectations" as hopes for progress in negotiations fade, bringing the risk of supply disruptions back into focus. The Strait of Hormuz is seen as crucial because its effective closure could hold back around 20% of global oil supply, with the impact considered most pronounced for Asian and Middle Eastern economies, while also increasing the risk of an energy shock to the global economy.
From the US, oil and petroleum product exports reached a record 12.88 million barrels per day last week amid surging demand from Europe and Asia due to Middle Eastern supply disruptions. EIA data also showed gasoline inventories fell by nearly 4.6 million barrels (greater than the expected 1.5 million barrel decline), and distillate inventories fell by 3.4 million barrels (vs. the expected 2.5 million barrel decline), although total US oil inventories actually rose by 1.9 million barrels, compared with market expectations for a 1.9 million barrel decline. (gn)*
Source: Newsmaker.id
