Oil prices surge 3% on stalled U.S., Iran peace talks
Oil prices surged approximately three per cent to reach a two-week high yesterday, driven by stalled peace talks between the U.S. and Iran and ongoing restrictions on shipments through the
Oil prices surged approximately three per cent to reach a two-week high yesterday, driven by stalled peace talks between the U.S. and Iran and ongoing restrictions on shipments through the Strait of Hormuz, which continue to tighten global oil supplies.
Brent crude futures increased by $2.90, or 2.8per cent, closing at $108.23 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose $1.97, or 2.1per cent, to settle at $96.37 per barrel. This marks Brent’s sixth consecutive daily gain for the first time since March 2025 and its highest closing price since April 7. WTI closed at its peak since April 13. Bob Yawger, director of energy futures at Mizuho, noted that the widening premium of Brent over WTI “should attract customers to the U.S. Gulf of Mexico and potentially push U.S. crude oil exports to new record levels.”
U.S. President Donald Trump recently reviewed a new Iranian proposal aimed at resolving the ongoing conflict with Tehran alongside his senior national security advisors. The conflict remains at an impasse, resulting in reduced energy supplies from the region. Tamas Varga, an analyst at PVM Oil Associates, highlighted the impact of this deadlock, stating: “Every day, 10-13 million barrels of oil fail to reach the international market, exacerbating an already tight oil balance. Consequently, oil prices have only one direction to move—upward.”
Maritime activity remains subdued, with only seven vessels, mainly dry bulk carriers, traversing the Strait of Hormuz in the past 24 hours, a significant drop from the pre-conflict average of 140 daily passages.
Approximately 20per cent of global oil supplies passed through this route prior to the outbreak of the Iran war on February 28. Furthermore, six tankers carrying Iranian oil have recently been turned back to Iran due to the U.S. blockade.
The ongoing disruptions continue to exert upward pressure on oil prices amid persistent geopolitical tensions in the region.
The ongoing geopolitical tensions and reduced shipments through the Strait of Hormuz are driving oil prices to multi-week highs, signaling a persistently tight global supply.
For businesses in Oman, this underscores both a strategic opportunity to capitalize on higher oil revenues and the risk of supply chain disruptions. Smart investors and entrepreneurs should consider diversifying energy portfolios and exploring alternative markets to hedge against continued volatility in the region
