Oil Prices Surge as US Maintains Strait of Hormuz Blockade Despite Iran Truce

Crude oil futures maintained a strong upward trajectory on Tuesday, driven by the US government's decision to keep a naval blockade in place at the Strait of Hormuz. While President Donald Trump announced an extension of the ceasefire with Iran, the continued restriction of oil flows has kept markets on edge. The Strait of Hormuz serves as one of the world's most vital maritime chokepoints. By maintaining the blockade, the US effectively limits the global supply of crude, creating a significant price floor despite the current lack of active military engagement between the two nations. Price action has been aggressive, with West Texas Intermediate (WTI) trading above $90 per barrel. This represents a gain of nearly 10% over the prior two trading sessions. Brent crude followed a similar trend, closing just below the $99 mark. Market participants are currently weighing the positive signal of a ceasefire against the tangible supply constraints of the blockade. President Trump stated that the naval restrictions will remain in effect until diplomatic discussions are concluded, suggesting that volatility will persist in the energy complex for the foreseeable future.