Oil Prices Climb as Strait of Hormuz Remains Blocked Despite US-Iran Ceasefire

Oil benchmarks trended higher on Friday as markets reacted to the continued closure of the Strait of Hormuz, despite a recent ceasefire agreement between the United States and Iran. West Texas Intermediate (WTI) for May delivery rose 0.55% to $98.33 per barrel, while Brent for June delivery climbed over 1% to $96.91. The volatility stems from Iran's failure to reopen the waterway, which typically handles approximately 20% of the world's oil supply. U.S. President Donald Trump issued a stern warning to Tehran on Thursday, demanding an end to any charges imposed on tankers transiting the strait, suggesting that the breach of terms threatens the stability of the two-week truce. The supply crunch is exacerbated by targeted strikes on Saudi Arabian energy assets. According to the Saudi Press Agency, attacks on the Manifa and Khurais oil fields have reduced production by roughly 600,000 barrels per day. Furthermore, a strike on a pumping station has hindered the East-West Pipeline, cutting flows by approximately 700,000 barrels per day. With the UAE's state oil firm confirming that the waterway remains largely shut, the market is bracing for prolonged disruptions. Goldman Sachs analysts indicate that buyers may need to rely on strategic stockpiles and alternative sources for at least another month, even as rising fuel costs begin to dampen global demand.