Oil rises as Hormuz tanker flows remain constrained despite US-Iran ceasefire

Oil prices rose on Friday as the US-Iran ceasefire failed to restore normal tanker traffic through the Strait of Hormuz, keeping global markets focused on persistent supply risks in the Gulf.

US West Texas Intermediate crude for May delivery gained 1.55% to $99.41 per barrel as of 0710GMT, while Brent crude for June delivery rose 1.45% to $97.33 per barrel.

The gains came as the Strait of Hormuz remained effectively restricted despite the truce reached earlier this week, dampening hopes of a swift recovery in oil flows through one of the world’s most important energy corridors.

President Donald Trump on Thursday accused Iran of failing to fully allow oil shipments through the strait and warned Tehran against charging tankers for passage, raising fresh doubts over the durability of the two-week ceasefire.

Before the war, the Strait of Hormuz handled around 20% of global oil supply, making any disruption to vessel traffic a major concern for energy markets.

Supply concerns were further compounded by attacks on Saudi Arabia’s energy infrastructure.

Saudi authorities said strikes cut the kingdom’s oil production capacity by about 600,000 barrels per day and reduced flows through the East-West Pipeline by roughly 700,000 barrels per day. The pipeline has served as a crucial export alternative as traffic through Hormuz has become increasingly difficult.

Attacks on the Manifa and Khurais oil fields also reduced production, while damage to refining facilities added to pressure on regional energy supply, according to the Saudi Press Agency.

The US secured the ceasefire agreement with Iran on Tuesday in exchange for reopening the strait to commercial shipping, but tanker traffic has yet to return to normal levels.

UAE oil chief and ADNOC CEO Sultan Al Jaber said Thursday that the waterway remained largely closed to regular shipping, underscoring the gap between the ceasefire agreement and conditions on the ground.