Oil prices surge amid US-Iran impasse, surpass $106 per barrel
What's the story
Oil prices have surged for the fifth consecutive day, hitting their most sustained upward trend since the start of the year. The rise comes amid stalled negotiations between the US and Iran, which could further delay oil flows from the Persian Gulf. Brent crude has crossed $106 per barrel and is on track for a weekly gain of around 17%. Meanwhile, West Texas Intermediate is trading close to $97 per barrel.
Negotiation hurdles
Naval blockade hurt negotiations
President Donald Trump's posts on Truth Social and his decision to maintain a naval blockade of Iranian ports have hurt negotiations mediated by Pakistan. The ongoing conflict has shaken energy markets since its onset in late February, with the near-closure of the Strait of Hormuz severely disrupting oil and gas flows from major Persian Gulf producers.
Market impact
Paper market catches up with reality of constricted supply
Mona Yacoubian, director of the Middle East Program at the Center for Strategic and International Studies, said the ongoing conflict's disruptive effects will likely have long-lasting implications. She added that "the paper market catches up with the reality of constricted supply," which could affect physical markets. Futures rose after Trump ordered US Navy to "shoot and kill" boats laying mines in the Strait of Hormuz.
Military action
US forces board Iranian oil supertanker in Indian Ocean
US forces have boarded an Iranian oil supertanker in the Indian Ocean, intensifying their blockade of the Islamic Republic's shipping. The Strait of Hormuz remains largely inactive, with only sporadic movements by Iran-linked vessels breaking the silence. Meanwhile, talks between Washington and Tehran remain stalled over several key issues such as Iran's nuclear program and Israeli strikes on Lebanon.