Oil Prices Top USD105 Amid Hormuz Blockade, US-Iran Tensions

(MENAFN) Oil prices crept upward Friday as the continued shutdown of the Strait of Hormuz and intensifying naval confrontations between Washington and Tehran kept global energy markets gripped by uncertainty — even as the Israel-Lebanon ceasefire received a fresh extension.

International benchmark Brent crude futures climbed 0.63% to $105.73 per barrel as of 0545 GMT, while the US benchmark West Texas Intermediate (WTI) added 0.32% to reach $96.17.

The uptick was driven by deepening fears over energy supply disruptions, with both American and Iranian forces engaged in ship seizures as naval blockades maintained a stranglehold over the Strait of Hormuz. Prior to the war's outbreak, the waterway handled approximately 20 million barrels of oil and petroleum products daily — cementing its status as one of the planet's most irreplaceable energy corridors.

Gains held firm despite an announcement by US President Donald Trump that Israel and Lebanon had reached an agreement to extend their ceasefire, following high-level talks at the White House.

"The Meeting went very well!" Trump said on his Truth Social platform, announcing the extension.

The ceasefire — originally structured as a 10-day arrangement — is expected to create space for further diplomatic engagement, with Washington also pledging to bolster Lebanon's defensive capabilities against Hezbollah.

Yet the fragile truce has done little to reopen Hormuz to normal traffic. The US-Iran standoff has evolved into a war of naval attrition, with both sides leveraging maritime control as an economic bargaining chip in pursuit of a broader resolution.

The severity of the crisis drew stark warnings Thursday from International Energy Agency Executive Director Fatih Birol, who characterized the situation as without historical precedent.

"We are facing the biggest energy security threat in history," Birol told media on Thursday. "As of today, we've lost 13 million barrels per day of oil ... and there are major disruptions in vital commodities," he said.

Birol has repeatedly sounded the alarm in recent weeks, cautioning that the Iran war and the protracted Hormuz closure risk triggering "the largest energy crisis we have ever faced" — and calling on governments worldwide to urgently build resilience through diversified and alternative energy sources.

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