Brent tops $105 on Hormuz tensions
- Brent crude settled at $105.07 a barrel on Thursday, April 23, after U.S.-Iran tensions in the Strait of Hormuz intensified and both sides kept blockades that choked tanker traffic. - West Texas Intermediate closed at $95.85, while Iran detained two cargo ships and the U.S. intercepted several Iranian tankers as President Donald Trump claimed U.S. forces had “total control” of the sea lane. - The Strait carried about 20 million barrels a day in 2024, so any prolonged disruption threatens a fifth of global petroleum supply. (eia.gov)
Brent crude closed at $105.07 a barrel on Thursday, April 23, after the U.S. and Iran tightened their standoff in the Strait of Hormuz. (cnbc.com) West Texas Intermediate settled at $95.85, also up about 3% on the day. CNBC reported tanker traffic through the strait remained very low as both sides seized ships during a fragile ceasefire. (cnbc.com) Bloomberg reported on April 22 that Washington and Tehran were both using blockades in the waterway after a fresh round of peace talks failed to materialize. President Donald Trump said the April 7 truce would stay in place while the U.S. waited for a new Iranian proposal. (bloomberg.com) By April 23, Bloomberg said the U.S. military had intercepted two oil supertankers and boarded a vessel carrying Iranian oil, while Trump ordered the Navy to fire on any boat laying mines in the strait. Iran was still maintaining its own restrictions on shipping. (bloomberg.com) The Strait of Hormuz is the narrow exit for Persian Gulf oil shipments, between Oman and Iran. The U.S. Energy Information Administration said flows through the chokepoint averaged 20 million barrels a day in 2024, equal to about 20% of global petroleum liquids consumption. (eia.gov) The Energy Information Administration said there are few practical alternatives if the strait is closed, which is why even short disruptions can delay supply, raise shipping costs and push world energy prices higher. (eia.gov) The move in oil landed alongside a rise in U.S. Treasury yields. Federal Reserve Bank of St. Louis data showed the 10-year Treasury yield at 4.34% on April 23, up from 4.26% on April 21, while the Treasury’s daily curve data showed longer maturities rising faster than shorter ones over that stretch. (fred.stlouisfed.org) (home.treasury.gov) For traders, the immediate question is whether the April 7 ceasefire holds long enough for shipping to normalize. Until that happens, the market is pricing Hormuz as a live supply risk rather than a distant geopolitical headline. (bloomberg.com) (cnbc.com)
