US West Texas Intermediate crude for May delivery rose 2.2% to $100.04 per barrel at around 5:25 a.m. ET, while Brent crude for June delivery increased 1.7% to $97.59 per barrel. The gains reflected ongoing market concern over restricted oil flows through one of the world’s most critical energy corridors.
US President Donald Trump warned Iran to “stop now” if it continues charging tankers for passage through the strait, saying such actions could undermine the fragile two-week ceasefire agreement that was tied to reopening the waterway.
Before the conflict, the Strait of Hormuz handled roughly 20% of global oil supply. However, shipping activity remains heavily constrained, keeping global energy markets on edge and sustaining a geopolitical risk premium in prices.
Trump criticized Iran’s handling of the situation in a social media post, accusing it of obstructing oil transit through the strategic chokepoint. His economic adviser Kevin Hassett said that even a single successful tanker passage could significantly ease market pressure.
Industry operators describe the situation as highly unstable. Shipping executives report no clear or consistent mechanism for transiting the strait, with vessels forced to adopt alternative routes closer to Iranian coastal waters. They also noted that risk premiums demanded by shipowners have surged sharply due to the uncertainty.
Logistics experts further warned that shipping conditions remain chaotic, with limited communication channels and no standardized process for securing safe passage, forcing companies to operate under heightened risk and cost conditions.
Despite diplomatic efforts and the ceasefire framework, the Strait of Hormuz remains a central flashpoint, with energy markets continuing to react sharply to every sign of disruption or escalation.
