Oil tops $100 as Iran seizes ships; markets wary as talks stall
Oil tops $100 as Iran seizes ships; markets wary as talks stall
Oil prices stay above $100 as Iran seizes two ships in the Strait of Hormuz and peace talks stall, keeping energy markets on edge and stocks buoyant.
Oil prices held above $100 a barrel on Thursday as Iran seized two container ships seeking to exit the Gulf via the Strait of Hormuz, tightening its grip on a waterway through which around a fifth of daily global oil and LNG supplies once moved. Brent crude fell 15 cents to $101.76 a barrel after settling above $100 for the first time in more than two weeks on Wednesday, while West Texas Intermediate slipped 14 cents to $92.82. The tug-of-war between supply disruptions and resilient demand kept the energy complex in a delicate balance.
The Strait of Hormuz remains a critical artery for global energy flows, a chokepoint whose control can ripple through oil markets. Iran’s actions come as peace talks with the United States show little progress, and Tehran has conditioned any broader ceasefire on the lifting of blockades that constrain its ports. The U.S. military has intercepted at least three Iranian-flagged tankers in Asian waters and redirected them away from positions near India, Malaysia and Sri Lanka, according to shipping and security sources. The dynamic underscores how geopolitical friction can quickly translate into price volatility for crude and refined products.
Despite the tightening energy picture, equity markets pushed higher. The S&P 500 climbed about 1 percent, and the Nasdaq rose roughly 1.6 percent as earnings season kicked into high gear. Japanese equities showed a breakout, with the Nikkei clearing 60,000 for the first time in years, while broader Asia-Pacific shares outside Japan posted gains. Analysts noted a curious disconnect between rising stock markets and the energy risk backdrop, suggesting investors are focusing on corporate earnings and liquidity conditions even as supply risks linger.
Looking ahead, analysts say energy traders will stay attentive to any shift in tensions, any move toward dialogue, or new enforcement actions in the Strait. The balance between supply constraints and demand resilience will continue to steer prices in the near term, with Brent and WTI likely to keep trading in responsive ranges until the geopolitical picture clarifies.
