Oil Extends Rally as Hormuz Blockade and Iran Standoff Persist

Oil prices rose on Friday as diplomatic efforts to end the Iran conflict remained stalled, with the Strait of Hormuz still closed and tensions between Washington and Tehran continuing to unsettle global energy markets.

Brent crude futures for July climbed 63 cents, or 0.57 per cent, to $111 a barrel in early trading. US benchmark West Texas Intermediate rose 9 cents to $105.20 a barrel.

The gains added to a sustained rally that has seen both benchmarks rise for four consecutive months. Brent’s June contract, which expired on Thursday, reached $126.41 a barrel, its highest level since March 2022.

Oil prices have surged since late February, when US and Israeli strikes on Iran triggered a wider regional crisis. The conflict led to the closure of the Strait of Hormuz, a vital shipping route through which roughly 20 per cent of the world’s oil and liquefied natural gas normally passes.

Since then, Iran has maintained restrictions on traffic through the waterway, while the US Navy has continued a blockade aimed at curbing Iranian oil exports. The disruption has tightened global supply and heightened concerns about energy security.

Brent crude rose by about 50 per cent in March alone, reflecting fears of prolonged supply shortages and broader instability across the Middle East.

Although a ceasefire has been in place since April 8, there has been little sign of a breakthrough in negotiations. Iranian Foreign Ministry spokesman Esmaeil Baghaei said on Thursday that a quick resolution was unlikely, cautioning against expectations of a rapid agreement regardless of who mediates the talks.

His remarks underscored the fragile state of diplomacy as discussions between Iran and the United States continue without significant progress.

Market nerves were further rattled earlier on Thursday after a senior commander in Iran’s Revolutionary Guards warned of “long and painful strikes” against US targets if Washington launched new attacks. Oil prices briefly surged on the comments before easing later in the session.

Meanwhile, President Donald Trump was scheduled to receive a briefing on potential new military options aimed at pressuring Iran into accepting a broader settlement. According to US officials, the plans include a possible series of strikes designed to force Tehran back to the negotiating table.

Analysts say the combination of stalled diplomacy, military threats and ongoing shipping disruptions is likely to keep oil markets volatile in the coming weeks.

With the Strait of Hormuz still shut and no immediate resolution in sight, traders remain focused on developments in the Gulf, where any escalation could send prices even higher and further strain the global economy.