Oil Prices Surge as Strait of Hormuz Closure and Naval Mines Threaten Global Supply

Global oil benchmarks extended their rally on Thursday as geopolitical tensions between the U.S. and Iran escalated, resulting in the continued closure of the Strait of Hormuz. Brent crude futures rose 1.7% to $103.60 per barrel, while WTI crude futures increased 1.8% to $94.60, marking the fourth consecutive session of gains. The price surge follows a significant escalation in the Middle East, with Iran seizing two cargo ships attempting to exit the Gulf. Tehran has further asserted control by implementing tolls on the strategic waterway, with the first revenues reportedly deposited into the Iranian Central Bank. Iranian officials have linked the closure to the U.S. naval blockade of Iranian ports. Adding to the supply anxiety, the Pentagon has informed the U.S. Congress that clearing naval mines allegedly placed by the Iranian military could take as long as six months. This timeline suggests a prolonged disruption to one of the world's most critical energy transit points, significantly limiting the flow of crude to global markets. Beyond geopolitical strife, the market is reacting to EIA data indicating a decline in U.S. inventories of key refined products, providing further fundamental support for higher prices. Diplomatic progress remains stalled, with U.S. President Trump maintaining a firm stance against concessions, suggesting that volatility in energy markets will persist in the near term.