Oil prices climb as Hormuz closure, US-Iran tensions persist

Oil prices edged higher on Friday as the continued closure of the Strait of Hormuz and escalating maritime tensions between the US and Iran kept global energy markets on edge, even as a fresh extension of the Israel-Lebanon ceasefire offered some diplomatic respite. International benchmark Brent crude futures rose 0.63% to $105.73 per barrel as of 0545GMT, while US benchmark West Texas Intermediate (WTI) gained 0.32% to $96.17. Before the war, approximately 20 million barrels of oil and petroleum products moved through the strait daily, making it one of the world’s most critical energy chokepoints.

Ceasefire extension but no Hormuz reopening

Prices rose despite President Trump announcing Thursday that Israel and Lebanon had agreed to extend their ceasefire by three weeks following a White House meeting. Trump said “The Meeting went very well!” on Truth Social. However, the US-Iran ceasefire has not restored normal traffic through Hormuz, as the conflict has shifted into naval blockades, with both sides seizing ships and seeking economic leverage for a broader settlement. The original 10-day US-brokered Israel-Lebanon truce, which took effect April 16, had been set to expire Sunday.

IEA warns of historic energy threat

International Energy Agency Executive Director Fatih Birol warned Thursday that the world is facing an unprecedented energy security threat due to the Hormuz closure and wider disruptions. “We are facing the biggest energy security threat in history,” Birol told CNBC. “As of today, we’ve lost 13 million barrels per day of oil ... and there are major disruptions in vital commodities.” Birol has previously warned that the Iran war could trigger “the largest energy crisis we have ever faced,” urging governments to strengthen resilience through alternative energy sources.