Brent Above $100 as U.S., Iran Trade Threats, Seize Ships


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil futures rose almost 4% Wednesday, driving Brent 
crude back above the key $100 bbl mark, as the United States and Iran traded 
threats and vessel seizures on the Strait of Hormuz after a breakdown in peace 
talks pushed the Middle East conflict into a new phase of uncertainty.

   U.S. President Donald Trump issued a fresh ultimatum to Iran that it had to 
reach a peace deal by Sunday or face further consequences of U.S.-Israeli 
military actions.

   Oil shippers were left directionless earlier on Wednesday after Trump 
indefinitely extended a ceasefire on Iran while keeping active a blockade on 
Iranian ports, which Tehran said it would match with its own freeze of the 
Hormuz waterway that serves a fifth of the world petroleum cargoes.

   Hours after Trump's ceasefire extension on Tuesday evening, the U.S. Navy 
intercepted and boarded an Iranian tanker laden with oil on the Hormuz.  Iran's 
Revolutionary Guards Navy, in response, fired at three container ships on the 
strait on Wednesday and seized and transferred two of the vessels to Iranian 
shores for alleged maritime violations.

   The fresh hostilities on the Hormuz kept the Middle East conflict, now into 
its 53rd day, at the front and center of energy markets, negating other 
developments, including weekly U.S. oil inventory data from the Energy 
Information Administration (EIA).

   "The oil trade situation remains fluid," said Phil Flynn, analyst at the 
Chicago-based Price Futures Group. "Further attacks or escalation in maritime 
incidents could trigger sharp moves in crude futures, tanker rates, and related 
energy equities."  

   At the close of Wednesdy's regular trading, NYMEX WTI crude for June 
delivery settled up $3.29, or 3.7%, at $ 92.96 bbl.

   Brent crude for June finished up $3.43, or 3.5%, at $101.91 bbl on ICE after 
a session high at $102.31. It was the first time the global crude benchmark had 
returned to triple-digit pricing since April 10, when it peaked at $103.87. 

   Among refined products, diesel proxy ULSD ended May trading on NYMEX up 
$0.2091 at $3.9379 gallon. In gasoline, NYMEX RBOB for May closed up $0.1481 at 
$3.3579 gallon.

   The U.S. dollar index rose 0.179 points to 98.40 against a basket of foreign 
currencies by 2:30 p.m. ET.

   Further complicating the Hormuz situation, the U.S. armed forces informed 
Congress on Wednesday that it could take up to six months to clear Iranian 
mines from the waterway after the war ends. The classified assessment by the 
Pentagon signaled that elevated oil and gasoline prices may persist late into 
the year, even if a peace deal is reached.

   On the U.S. supply front, the EIA reported that commercial crude oil stocks 
rose by 1.9 million bbl to 465.7 million bbl during the week ended April 17. 
The current inventory level remains approximately 5.1% above year-ago levels. 
U.S. crude production has been unhindered by the Middle East conflict, with the 
price hike of the past two months and a boom in exports adding to the incentive 
of U.S. drillers to produce more.

   U.S. gasoline inventories fell by 4.6 million bbl last week to 228.4 million 
bbl last week, while distillate fuel balances shrank by 3.4 million bbl to 
108.1 million bbl, the EIA said.




(c) Copyright 2026 DTN, LLC. All rights reserved.