Oil prices extended gains on Thursday after big increases in the previous session amid reports of action against ships by both Iran and the US and stalled peace talks.
Oil prices jumped on Wednesday (April 22) with Brent trading above $100 a barrel, erasing earlier losses following reports of gunfire attacks on at least three container ships in the Strait of Hormuz.
Tensions have escalated again in the Strait of Hormuz as Iran said it was tightening control over it warning mariners that the energy lifeline was again closed, as shipping sources said at least two vessels came under fire while trying to transit the waterway. It said this was in response to a continued US blockade of Iranian ports.
The US Central Command (CENTCOM) forces will begin implementing a blockade of all maritime traffic entering and exiting Iranian ports today (April 13) at 10 am ET (3 pm GMT and 7pm GST), following President Donald Trump's announcement on Sunday on the action.
US President Donald Trump has said the US navy will protect ships in the Middle East and the government will provide insurance "if necessary" in a bid to contain soaring energy prices sparked by the US-Israel war with Iran.
US President Donald Trump spoke to Indian Prime Minister Narendra Modi on Tuesday about the West Asia situation, including the need to secure the key energy waterway, Strait of Hormuz, that remains under an Iranian blockade. Modi reiterated India’s support for de-escalation and restoration of peace at the earliest.
At least 150 tankers, including crude and LNG vessels, dropped anchor in open Gulf waters beyond the Strait of Hormuz and dozens more were stationary on the other side of the chokepoint, shipping data showed, after US and Israeli strikes on Iran plunged the region into turmoil.
India is pressing Iran to allow more Indian-bound vessels through the Strait of Hormuz after Tehran permitted two Indian-flagged liquefied petroleum gas (LPG) carriers to cross the strategic waterway, as New Delhi seeks to ease mounting energy supply risks from the Gulf conflict.
Ships must co-ordinate with Iran's navy to pass through the Strait of Hormuz, reported the country's Mehr news agency on Thursday citing the foreign ministry. This comes after its new Supreme Leader Mojtaba Khamenei's threat to keep this vital passage shut as leverage against the US and Israel.
Iran's Revolutionary Guards warned on Saturday that no vessel would be allowed to pass through the Strait of Hormuz, a chokepoint through which nearly a fifth of the world’s oil supply passes.
