Oil Prices Surge Above $100 as Iran Detains Container Vessels in Strait of Hormuz

Global oil prices jumped sharply on Wednesday after Iran announced the seizure of two container ships in the strategically vital Strait of Hormuz, amplifying geopolitical tensions and triggering fresh concerns over energy supply disruptions.

Brent crude, the international benchmark, rose more than 2% to reach $100.91 per barrel in mid-morning trading. U.S. West Texas Intermediate (WTI) futures also climbed over 2%, hitting $91.81 per barrel, as markets reacted swiftly to the developments.

Latest Oil Prices: 

WTI Crude  $93.37 +3.70 +4.13%

Brent Crude $101.8 +3.36 +3.41%

Murban Crude $101.0 +4.70 +4.88%

WTI Midland $95.25 +2.45 +2.64%

Opec Basket $97.74 -1.86 -1.87%

Indian Basket $103.1 +2.64 +2.63%

Natural Gas $2.752 +0.055 +2.04%

Gasoline $3.341 +0.132 +4.10%

Heating Oil $3.920 +0.191 +5.12%

The incident unfolded in the Strait of Hormuz, one of the world’s most critical oil corridors, through which a significant portion of global crude exports passes. According to Iran’s semi-official Tasnim News Agency, the Islamic Revolutionary Guard Corps detained two container vessels allegedly attempting to transit the waterway without authorization.

The move has heightened fears of potential disruptions in global energy flows, particularly at a time when markets remain sensitive to geopolitical risk.

The escalation comes shortly after Donald Trump announced an extension of a temporary ceasefire with Iran beyond its previously set deadline. In a statement posted on his platform, Truth Social, Trump cited “sharp divisions” within Iran’s political leadership as a key factor behind the decision.

He added that the ceasefire would remain in effect until Iranian officials present a unified proposal aimed at ending hostilities with Washington and Israel. Meanwhile, the United States is set to maintain its blockade on Iranian ports.

The combination of maritime escalation and ambiguous diplomatic signals has left investors navigating a landscape of uncertainty. While the ceasefire extension reduces the immediate risk of military confrontation, it underscores the lack of a clear diplomatic breakthrough.

Market analysts say such mixed messaging is contributing to volatility in energy markets. “Investors remain in a state of watchful speculation,” noted Russ Mould, investment director at AJ Bell, in a research note released Wednesday.