There was no easing in prices even after Trump announced a three-week extension of the ceasefire between Israel and Lebanon.
West Texas Intermediate, or the US Crude variant is now trading above the mark of $97 a barrel, while Brent crude surged above the $106 a barrel mark overnight. Brent prices are now up 16% this week.
The Strait of Hormuz continues to remain closed with both sides claiming control of the narrow, crucial energy chokepoint. Trump continued to assert that US has complete control of the region and that he has instructed the US navy to blow up any ship that is seen planting mines in the region.
According to LSEG data, eight ships managed to navigate the waterway on Wednesday, a far cry from the 100+ daily average seen pre-war.
There is still no clarity over whether US and Iran will hold a second round of negotiations after a failed outcome in Islamabad earlier. The Iranian side has maintained that talks are not possible till the US blockade of the Strait continues.
“The tensions are tightening a bit more now — the market is now pricing in a more intense standoff, with a longer duration,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc.
(With Inputs From Agencies)
