Oil prices surged on 24 April as fears over a new surge in hostilities in the Middle East pushed Brent crude futures up by $2.18, or 2.1%, to $107.25 a barrel (bbl) at 10:19 GMT.
Meanwhile, US West Texas Intermediate (WTI) futures climbed $1.78, or 1.9%, to $97.73/bbl, reported Reuters.
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The gains followed concerns over a possible escalation of military activity in the Middle East after Iran released footage showing commandos boarding a cargo vessel in the Strait of Hormuz.
This waterway, which previously handled around a fifth of global oil shipments, continues to be largely inaccessible.
Iran’s seizure of two cargo ships has underscored the difficulties Washington faces in controlling passage through the channel.
For the week, Brent crude futures have increased by 18% and WTI by 16%, the second-largest weekly growth since the war began.
On 23 April, both contracts ended more than 3% higher amid reports of air defences operating in Tehran and indications of conflicts within Iran’s political leadership.
US President Donald Trump commented that Iran “may have loaded up its weaponry a little bit” during a two-week ceasefire but remarked that, “the US military could eliminate it in a single day”.
He also said he would extend the ceasefire indefinitely to enable continued peace negotiations. Trump later added “Don’t rush me” in response to queries about how long he expected talks to last, explaining that he wanted to make “a great deal” and would avoid setting a timetable for ending the fighting.
Haitong Futures said in a report that the ceasefire increasingly appeared to be a lead-up to renewed military action. The group stated that if negotiations make no headway by the end of April and conflict resumes, oil values could reach new annual peaks.
Wealth Club chief investment strategist Susannah Streeter has been quoted across multiple media outlets as saying: “There is set to be fresh financial pain ahead as key shipments from the region remain blocked. That is set to keep costs elevated for a vast array of commodities.”
