Oil climbs above $103 on Hormuz tensions
Prices rise as risks to supply keep markets on edge
Brent crude traded above $103 a barrel as oil prices rose amid persistent tensions around the Strait of Hormuz and uncertainty over a proposed reopening of the waterway. Brent was quoted at $103.55 per barrel, up about 1.8% from the previous close, while US West Texas Intermediate increased roughly 1.8% to $98.15. Markets reflected elevated geopolitical risk premiums as traders monitored developments affecting the strategic route that carries about one-fifth of global oil and LNG shipments.
Reports indicated US leaders were briefed on an Iranian proposal to reopen the strait in exchange for ending hostilities and lifting the blockade, a plan that reportedly does not address Iran’s nuclear program. US officials expressed dissatisfaction with the proposal, and diplomatic efforts remain fragile. UN Secretary-General Antonio Guterres called on parties to reopen the waterway, urging unimpeded passage, no tolls and no discrimination to allow trade to resume.
Recent incidents underscored ongoing risks: a US warship intercepted a crude tanker bound for an Iranian port, part of continued interdictions under the blockade and a sustained naval presence that has kept markets cautious. Analysts say even limited disruptions or heightened military activity can tighten supply expectations and trigger precautionary buying, amplifying price moves.
Although peace overtures and calls for de-escalation continue, traders remain wary that instability could disrupt tanker movements through the narrow passage. Energy markets are sensitive to broader regional dynamics involving Iran and other actors, and the balance between diplomatic progress and persistent security actions will likely dictate near-term price direction. With uncertainty prevailing, prices remain supported by risk premia tied to potential interruptions of shipments through the Strait of Hormuz.
