Prices of crude oil were launched Wednesday, with Brent over $100 a barrel, reaching $101.91, while West Texas Intermediate closed at $92.96, with an increase of over 3%. The increase was caused by the occupation of two container transport ships by the Guards of the Iran Revolution in the Straits of Hormuz. Despite the extension of the truce by Donald Trump, oil flows remain intermittent and the US retain Iran's naval blockade, as peace talks collapsed.
Analyticalally:
The prices of crude oil were up on Wednesday, with Brent to again exceed $100 a barrel, after Iran announced that it occupied two container ships in Strait of Hormuz, a few hours after the President of the United States Donald Trump decided to extend the truce.
Brent International Reference Point was increased by more than 3%, closing at $101.91 a barrel, while the American West Texas Intermediate He also noted a rise of over 3%, closing at $92.96.
The markets reacted strongly as it became clear that extending the truce does not necessarily mean restoring oil flows through the Straits of Hormuz. Oil exports from the Persian Gulf countries have collapsed during the conflict, causing one of the biggest supply disruptions in the history of the oil market.
Tank traffic in the region remained limited, as shipping companies continue to face serious safety risks. Iran's Revolution Guards announced they captured two container ships attempting to cross the Straits «without authorisation», according to the state agency Tasnim.
At the same time, the United States maintains Iran's naval blockade despite the truce, maintaining high tension in the region.
Trump decided to extend the temporary truce after the collapse of American plans for a new round of peace talks with Iran in Pakistan. The American president argued that Iran's leadership remains divided and made it clear that the truce will continue until Tehran presents a single proposal to end hostilities with the US and Israel.
The extension of the truce captures the deep uncertainty surrounding the de-escalation course in the area. Although temporarily reducing the risk of direct military conflict, it also highlights internal faults in Iranian leadership and the absence of substantial diplomatic progress.
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