WASHINGTON (dpa-AFX) - Crude oil has surged on Thursday as traffic via the Strait of Hormuz remains closed, keeping oil supply concerns elevated while investors await Iran's next move on the extension of the ceasefire by the U.S. in the gulf war and calls for peace talks.
WTI Crude Oil for June month delivery was last seen trading up by $2.49 (or 2.68%) at $95.45 per barrel.
Despite the extension of the ceasefire on all attacks on Iran by U.S. President Donald Trump for an unspecified period, the U.S.-Iran stalemate continues.
The war between U.S.-Israeli forces against Iran entered its eighth week. Soon after the outbreak of war, Iran blocked the Strait of Hormuz shipping route.
The ceasefire announced on April 8 by Trump where he ordered U.S. forces to halt all strikes on Iran for two weeks was set to end on April 22.
A few days before the lapse of the ceasefire, the U.S. agreed to a second round of negotiations with Iran at the insistence of regional intermediaries.
Iran refused to participate in any talks after U.S. forces captured an Iranian-flagged vessel in the Strait of Hormuz. Trump ordered a blockade of all vessels entering or exiting any port in Iran.
Trump had warned that the U.S. will start bombing Iran's energy and power installations fiercely if Iran fails to reach a deal with the U.S.
Unflinching, Iran responded stating that it had 'new cards' on the battlefield.
The twin blockades by the U.S. and Iran have brought global oil trade to a near-complete halt.
Earlier this week, when the two-week ceasefire was about to end, Trump announced its extension at the request of Pakistan which is set to host the peace negotiations if Iran agrees.
Despite Trump's nod to extend the ceasefire, Iran continued its offensives. Iran declined any negotiations as long as U.S naval restrictions hold.
Accusing of attempting to transit the narrow seaway, Iran also seized two vessels across the Hormuz strait.
Meanwhile, Trump issued a 'shoot on sight' directive on any boat linked to Iran that attempts to lay sea mines across the strait. He added that U.S. minesweepers are working at a 'tripled up level' to cleanly remove all the mines planted by Iran.
Claiming infighting going on in the Iranian regime between 'moderators' and 'hardliners', Trump asserted that U.S. forces have taken control of the Hormuz Strait, sealing it tightly, to compel Iran to make a deal with the U.S.
Data released yesterday on the U.S. oil and energy inventories indicated a rise in crude oil and a decline in gasoline and distillate inventories.
Meanwhile, Israel's Defense Minister Israel Katz stated that if the U.S. gives the 'green signal,' it would resume the war on Iran and send the nation to the 'Stone Age.'
The prevailing uncertainty in the gulf crisis kept alive concerns of inflation and supported oil prices.
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