Oil prices surge 4% as Iran vows continued closure of Strait of Hormuz despite ceasefire extension

Tokyo: International oil prices surged more than 4% on Thursday following a declaration from Tehran that the Strait of Hormuz would remain closed as long as the United States maintains its naval blockade, despite the recent extension of a bilateral ceasefire.

In early trading at approximately 0025 GMT, West Texas Intermediate (WTI), the primary U.S. benchmark, climbed 4.06% to reach $96.73 per barrel. Simultaneously, Brent North Sea crude, the global standard, rose 3.62% to $105.63. Although both benchmarks experienced a slight retreat in the ensuing minutes, the market reaction underscored the volatility surrounding the regional conflict.

Energy costs have escalated sharply since Feb. 28, the date U.S. and Israeli forces launched strikes against Iran. Prices have continued to climb as investors weigh the persistent uncertainty regarding a potential resumption of full-scale hostilities.

The market surge follows a Tuesday announcement from U.S. President Donald Trump, who stated he would indefinitely maintain the current truce. The extension was intended to provide additional time for peace negotiations facilitated by Pakistan.

While Iranian officials expressed appreciation for the diplomatic mediation efforts led by Islamabad, the government in Tehran has offered no further formal commentary regarding Trump’s decision to extend the ceasefire.

With inputs from AFP