Oil Prices Edge Higher as Ships Stuck in Waterway
Oil prices edged higher on Thursday as shipping disruptions in the Strait of Hormuz and escalating Israeli strikes on Lebanon heightened concerns over regional supply, despite a temporary ceasefire.
Investors signal concerns that crude oil supply from the key Middle East producing region may not fully resume amid doubts that the two-week ceasefire between the U.S. and Iran will hold.
International benchmark Brent crude futures traded at $97.03 per barrel, up around 2.4% from the previous close of $94.75. US benchmark West Texas Intermediate (WTI) rose about 3.3% to $97.48 per barrel, compared with $94.41 in the previous session.
Price gains were driven by ongoing disruptions in the Strait of Hormuz and supply concerns stemming from Israel’s attacks on Lebanon, even as a two-week ceasefire remained in place.
Although vessel transits through the Strait of Hormuz have resumed under one of the ceasefire conditions, maritime disruptions persist due to Iran’s continued significant control over access and passage.
A large number of ships were stranded in the Strait of Hormuz early Thursday, according to Iran’s semi-official Tasnim news agency. Tasnim said “huge numbers” of vessels were stuck in the strategic waterway.
The report came hours after Iran’s state broadcaster IRIB quoted the Ports and Maritime Organisation as saying that vessels wishing to pass through the strait must coordinate their movement with the Islamic Revolutionary Guard Corps Navy and use designated routes.
The ports and maritime authority said Wednesday evening that the measure was necessary “due to the war situation in the Persian Gulf and the possible presence of anti-ship mines in the main traffic zone of the Strait of Hormuz.”
The developments came a day after the United States and Iran announced a ceasefire agreement aimed at paving the way for a final deal to end a war launched by Washington and Tel Aviv against Tehran on Feb. 28.
While Iranian and Pakistani officials said the agreement also included Lebanon, Israel insisted that Lebanon was not part of the ceasefire and launched a wide wave of airstrikes across the country on Wednesday.
US President Donald Trump said late Wednesday that the US will maintain a strong military presence in and around Iran until a “real agreement” is fully implemented, warning of a massive response if commitments are not upheld.
Israeli attacks continued in the Lebanese capital early Thursday, with a massive explosion heard after an Israeli airstrike targeted a southern suburb of Beirut.
Lebanon’s state news agency said the strike hit a residential building in the Shiyyah area in the southern suburb of Dahyeh. No casualties were immediately reported.
Late Wednesday, Israeli warplanes struck the Lailaki-Kafaat area in southern Beirut, with the blast heard across the capital. FTSE Russell Lowers Free Float for Non-UK Incorporated Companies
