Oil Surges Above $100 as Strait of Hormuz Attacks Rattle Markets

Global oil prices climbed sharply on Wednesday, with Brent crude rising above the $100 mark after reports of gunfire attacks on multiple commercial vessels in the strategically vital Strait of Hormuz.

Brent crude futures gained $1.59, or 1.6 percent, to reach $100.07 a barrel by late morning trading, while West Texas Intermediate rose $1.51, or 1.7 percent, to $91.18. Both benchmarks had already posted gains of around 3 percent in the previous session, reflecting growing concerns over supply disruptions.

Maritime security officials and UK Maritime Trade Operations confirmed that at least three container ships were struck by gunfire in the strait earlier in the day. The incidents added to fears about the safety of one of the world’s most important energy corridors.

Tensions in the region have escalated since Iran imposed restrictions on vessels passing through the waterway. The move followed earlier military actions involving the United States and Israel, as well as a US-led blockade targeting Iranian ports. The situation has created uncertainty over shipping routes and energy flows at a time when global markets are already under strain.

Earlier in the day, Donald Trump announced that Washington would extend its ceasefire with Iran to allow more time for negotiations aimed at ending the conflict. The extension came just hours before the truce was due to expire, though it remained unclear whether Tehran or Israel would formally agree to the continuation.

The Strait of Hormuz has long been a key transit route for global energy supplies, carrying roughly one-fifth of the world’s oil and liquefied natural gas before the conflict erupted in late February. Any disruption in the passage of tankers through the narrow channel has immediate consequences for prices and supply chains worldwide.

In Europe, Volodymyr Zelensky said the Druzhba pipeline, which transports Russian oil, was technically ready to resume operations. However, industry sources indicated that Russia could halt shipments from Kazakhstan to Germany through the pipeline starting May 1, adding another layer of uncertainty to the market outlook.

Investors are also awaiting official data from the US Energy Information Administration, due later in the day. Preliminary figures from industry sources suggested a decline in US crude inventories by 4.5 million barrels last week, alongside reductions in gasoline and distillate stocks.

Analysts said that if the inventory draw is confirmed, it would signal strong demand from regions such as Europe and Asia, where buyers are seeking alternative supplies amid ongoing disruptions.

The combination of geopolitical tensions, constrained shipping routes and tightening inventories continues to keep oil markets on edge, with traders closely watching developments in the Gulf for further signs of escalation or relief.