Oil prices hold above $105 as Hormuz stays shut in 2026

Oil steadies after a volatile week

Oil prices held above the US$105 level on Friday as the Strait of Hormuz remained closed and the US-Iran conflict shifted into duelling naval blockades. Brent crude climbed 0.63% to US$105.73 a barrel, while US West Texas Intermediate (WTI) advanced 0.32% to US$16.17. The move followed sharp price swings seen earlier in April as headlines on ceasefire talks, shipping restrictions, and military risks repeatedly changed market sentiment. Traders continued to price in the immediate impact of disrupted flows through one of the world’s most important oil transit chokepoints.

Friday’s price snapshot: Brent above $105, WTI near $16

Friday’s gains kept Brent above US$105 even as markets assessed the durability of multiple ceasefires and the risk of escalation at sea. The Strait of Hormuz has remained shut with no clear resolution signalled in the reports. The price action also came after a strong rally on Thursday, when oil jumped about 4% after Iran said it would not reopen the strait while the US naval blockade remained in place. At around 0025 GMT on Thursday, WTI climbed 4.06% to US$16.73 per barrel and Brent rose 3.62% to US$105.63, before easing in the following minutes.

Strait of Hormuz remains closed as naval standoff drags on

The Strait of Hormuz is a narrow route linking the Persian Gulf to global markets, and the near-halt of shipping traffic has been described as the biggest-ever oil market disruption in the provided reports. The conflict initially involved strikes and diplomatic deadlines, but it has now evolved into a maritime contest for economic leverage. According to the text, Iran seized two cargo ships in the strait on Wednesday and continued to demand vessels receive its permission to cross. The US, meanwhile, has intercepted several Iranian oil tankers and maintained a blockade of Iran’s ports since 13 April.

Ceasefires hold, but the conflict shifts to blockades

A broader US-Iran ceasefire has held, but commentary in the reports stressed that a ceasefire does not necessarily mean a smooth return to normal trade routes. Israel and Lebanon agreed to extend their ceasefire for three weeks following a White House meeting on Thursday. Donald Trump posted on social media: “The Meeting went very well!” Even with ceasefire extensions, analysts cited in the text warned that the maritime restrictions and ongoing tensions make de-escalation uncertain.

What triggered April’s surge: talks collapse and blockade announced

The sequence described in the reports shows how quickly prices reacted to policy and military developments. On April 13, crude oil prices surged past US$100 a barrel after US-Iran peace talks collapsed and Washington announced a blockade of the Strait of Hormuz. Brent jumped 8.36% to US$103.16 and WTI rose 8.22% to US$104.57, according to the text. US forces were set to begin implementing the blockade from 10:00 a.m. New York time on Monday, applying it to vessels entering or departing Iranian ports while still permitting travel between non-Iranian ports.

Supply disruption: 20 million barrels a day at risk

The scale of the disruption is central to the price response. Around 20 million barrels of oil and petroleum products were shipped through the strait daily before the war began, according to the text. Fatih Birol, head of the International Energy Agency, told CNBC that the world was facing “the biggest energy security threat in history.” He said: “As of today, we’ve lost 13 million barrels per day of oil and there are major disruptions in vital commodities,” and urged governments to bolster resilience with alternative energy sources.

Market commentary: pressure builds as closure persists

A note from Commonwealth Bank of Australia said the longer the strait remains closed, the greater the economic costs, raising the likelihood one side may be forced to back down. The bank added it judged the US would be the first to concede due to mounting political and economic pressure, while warning the risk of major military escalation remained. Vishnu Varathan, head of macro strategy for Asia-Pacific at Mizuho, told Reuters that the situation would not be a linear de-escalation. He also said investors were looking for excuses to put on optimistic trades opportunistically and that “anybody in the market” did not truly believe the situation would be resolved within a week or two.

Beyond oil: currencies calm even as energy risk remains high

While oil remained volatile, the currency market moves cited in the text were comparatively modest. The euro fell to US$1.1684 and was set to lose nearly 0.7% for the week. Sterling held at US$1.3469. Separately, the reports also noted US gasoline prices edging higher as Brent stayed above US$100, with AAA data showing the average price for a gallon of gas rising to US$1.72, up from US$1.70 a day earlier.

Key facts table: prices, dates, and disruptions

What investors are watching next

The immediate driver for crude remains whether shipping restrictions ease and whether any framework emerges to reopen the strait without further seizures at sea. The reports also emphasised that even if Hormuz transit picks up, energy supplies may not return instantly because output has been reduced at fields and refineries have curtailed production or shut down. The presence of a ceasefire alongside a blockade keeps risk premiums elevated in the oil market. For import-dependent economies, the reported loss of 13 million barrels per day and the prolonged closure of a route that carried about one-fifth of the world’s crude and liquefied natural gas are the core constraints cited in the text.

Conclusion

Oil held firm on Friday with Brent above US$105 as the Strait of Hormuz stayed closed amid a US-Iran naval standoff marked by ship seizures and a continuing port blockade. Ceasefire extensions have reduced immediate battlefield escalation but have not reopened shipping lanes. Markets will continue tracking any changes to crossing permissions, interceptions at sea, and official steps that could restore traffic through the strait.