WASHINGTON (dpa-AFX) - Crude oil has soared on Thursday as Iran allows only restricted naval traffic through the Strait of Hormuz, renewing supply disruption concerns. Further, Israel's bombardment of Lebanon kept Middle East tensions alive.
WTI Crude Oil for May month delivery was last seen trading up by $3.25 (or 3.44%) at $97.66 per barrel.
The U.S.-Israel combined attacks on Iran, which started on February 28, causing oil prices to catapult for nearly six weeks, came to a halt after both the nations announced a truce.
Around 06:30 p.m. ET on Tuesday, Trump announced a 'two-week halt' on all U.S. attacks on Iran. Reacting quickly, oil prices nosedived yesterday.
Trump announced through Truth Social that U.S. forces would be stationed near Iran with all the ammunitions and weaponry until a final agreement is reached.
Trump wanted Iran to allow a completely free, safe, and secure passage for all vessels via the Strait of Hormuz. In addition, he insisted Iran should never build nuclear weapons.
Trump warned that if Iran fails to make a deal, the U.S. will strike again with more might.
Meanwhile, claiming that the ceasefire agreement does not include the Israel-Lebanon conflict, Israel intensely attacked Lebanon today, killing over 200 people.
Angered Iran promptly stated that such strikes would render negotiations for a permanent end to the conflict 'unreasonable,' unsettling investors who were expecting a faster resolution to the gulf crisis.
A U.S. team of high-level diplomats headed by Vice President JD Vance is scheduled for discussions with an Iranian team in Islamabad, Pakistan on Saturday, April 11.
Reuters quoted Iran's media outlets as stating that Iran has provided maps marked with navigational directions to tankers stranded at sea to help them avoid the sea mines planted in the Strait of Hormuz during the month-long gulf war.
The Wall Street Journal stated that Iran would limit the number of ships transiting through the strait to around 15. Iran's Islamic Revolutionary Guards Corps would be monitoring the traffic.
Iran is considering collecting a toll from vessels transiting through the channel, a move which could trigger widespread resistance.
Prior to the U.S.-Israel versus Iran war, ships moved through the strait without the requirement for Iran's coordination.
Despite the ceasefire announcement, oil and energy transport is likely to face obstruction for at least a few more days, renewing concerns of supply side disruption.
Goldman Sachs lowered its second-quarter 2026 forecast for oil prices following the ceasefire announcement.
The investment bank expects Brent to average at $90 per barrel and West Texas Intermediate to trade at around $87 per barrel, marking a decline from its earlier projection of $99 and $91, respectively.
Yesterday's data on crude oil inventories in the U.S. from the American Petroleum Institute and U.S. Energy Information Administration revealed that for the week ending April 3, inventories rose by 3,720,000 barrels and 3,080,000 barrels, respectively, hinting that supply is pacing out the demand.
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