Oil Prices Climb Above $100 as Hormuz Tensions Persist and Talks Stall

Global oil prices continued their upward trend on Thursday, gaining more than $1 as stalled negotiations between the United States and Iran and ongoing restrictions in the Strait of Hormuz weighed on energy markets.

Brent crude rose by $1.26, or 1.2 percent, to reach $103.17 a barrel in morning trading, building on gains from the previous session when it closed above $100 for the first time in more than two weeks. US benchmark West Texas Intermediate also climbed $1.20, or 1.3 percent, to $94.16 a barrel. Both contracts had surged by more than $3 on Wednesday amid tighter supply expectations and limited progress in diplomatic efforts.

Market analysts pointed to fading optimism over a breakthrough in talks aimed at ending the conflict. The lack of movement has prompted traders to adjust expectations, with concerns growing that supply disruptions in the Gulf could persist.

Shipping activity through the Strait of Hormuz remains constrained. Before the conflict began in late February, the route handled roughly one-fifth of global oil flows. Now, restrictions imposed by both sides have significantly reduced traffic. Iranian authorities have reportedly seized vessels attempting to pass through the corridor, while the United States continues to enforce a naval blockade targeting Iranian trade.

Tensions escalated further this week after reports that Iranian forces detained two ships in the waterway. At the same time, US naval operations have intercepted several Iranian-flagged tankers in Asian waters, redirecting them away from key shipping lanes near India, Malaysia and Sri Lanka.

Despite these developments, US President Donald Trump extended a ceasefire earlier this week following mediation efforts led by Pakistan. The extension paused immediate escalation, though it did not lead to a relaxation of maritime restrictions. Iranian officials have indicated that a lasting ceasefire would require the removal of the US blockade.

On the supply side, the United States has increased exports to meet rising demand from Europe and Asia. Total shipments of crude oil and refined products reached a record 12.88 million barrels per day, as buyers sought alternative sources amid disruptions in the Gulf.

Recent data also highlighted mixed inventory trends in the US. Crude stockpiles rose by 1.9 million barrels, defying expectations of a decline. In contrast, gasoline inventories dropped sharply by 4.6 million barrels, while distillate stocks fell by 3.4 million barrels, both exceeding forecasts.

The combination of restricted shipping routes, geopolitical uncertainty and shifting supply patterns continues to drive volatility in global oil markets. Traders remain focused on developments in the Strait of Hormuz, with any change in access to the critical route expected to have an immediate impact on prices.