Oil Prices Surge, Brent Tops $106 on Shipping Concerns
Oil prices rose on Friday as persistent tensions between the United States and Iran, along with continued disruptions in the Strait of Hormuz, fueled concerns about global supply.
International benchmark Brent crude traded at $106.14 per barrel, up around 1.01% from the previous close of $105.07. US benchmark West Texas Intermediate decreased about 0.4% to $96.45 per barrel, compared with $96.81 in the previous session.
US President Donald Trump said he had instructed the navy to strike any vessels laying mines in the Strait of Hormuz. He also noted that mine-clearing operations were ongoing and ordered the navy to triple such efforts.
Iran’s judiciary chief, Gholam-Hossein Mohseni Ejei, responded by saying US forces lack the courage to approach the strait. He claimed that attempts by US destroyers Peterson and Murphy to pass through the strait on April 12 were thwarted by Iran’s Revolutionary Guard.
Meanwhile, the US military announced it had seized the M/T Majestic X tanker in the Indian Ocean, alleging it was under sanctions and carrying Iranian oil.
The move is part of broader maritime enforcement aimed at disrupting what Washington described as “illicit networks” and preventing vessels from being used to support Iran financially.
The expansion of US naval operations and Iran’s hardline rhetoric have heightened concerns over supply security, while tanker seizures under sanctions reinforced expectations of further disruptions to global oil flows, supporting prices.
On the other hand, Iran’s navy has allegedly placed fresh underwater mines in the Strait of Hormuz this week, while the US dispatched a third aircraft carrier to the region, according to an Axios report on Thursday.
The report, citing a US official and a separate source familiar with the matter, said American forces detected the operation and have been closely tracking it. Officials said they know the exact number of mines deployed but declined to reveal the figure.
Following briefings on the developments, Trump ordered the US Navy via a Truth Social post to shoot any Iranian boats caught laying mines with “no hesitation.”
Shipping through the Strait of Hormuz has been severely disrupted since the US–Israeli war against Iran began on Feb. 28, and a US naval blockade was announced on April 13.
Roughly 20% of global oil supply transits the strait daily, and heightened insecurity has driven up oil prices as well as shipping and insurance costs.
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