Summary
- Reports of the Iran Islamic Revolutionary Guard Corps’ seizure of ships in the Strait of Hormuz pushed Brent crude prices back above $100 a barrel.
- Brent futures and WTI closed up 3.5%% and 3.7%%, respectively, underscoring continued strength in oil prices.
- A UBS commodities analyst said tightness in oil market supply and support for oil prices would persist as long as traffic through the Strait of Hormuz remains restricted.
Forecast Trend Report by Period
Brent crude rose back above $100 a barrel after reports that Iran’s Islamic Revolutionary Guard Corps seized vessels in the Strait of Hormuz.
On ICE Futures Europe on April 22, June Brent settled at $101.91 a barrel, up 3.5% from the previous session.
On the New York Mercantile Exchange, June West Texas Intermediate crude settled at $92.96 a barrel, up 3.7%.
The IRGC Navy said it had seized two container ships, the MSC Francesca and the Defaminodas, and taken them into Iranian territorial waters for cargo and document inspections.
Iran said the vessels had attempted to pass through the Strait of Hormuz without authorization from the Iranian military.
Mehr News Agency also reported that the container ship Euphoria was seized by the IRGC Navy while transiting the strait.
The UK Maritime Trade Operations said a vessel in the strait had come under attack from IRGC fast-attack craft that day.
The seizures came a day after President Donald Trump announced an extension of a "two-week ceasefire" with Iran, one day before it had been due to expire.
The episode followed Trump’s pledge to maintain a maritime blockade and suggests Iran is trying to use control of the Strait of Hormuz as leverage in ceasefire talks.
Giovanni Staunovo, a commodities analyst at UBS, said oil-market supply tightness would persist and crude prices would remain supported as long as transit through the Strait of Hormuz stays restricted.
The US Energy Information Administration said gasoline inventories stood at 228.4 million barrels as of April 17, down 4.6 million barrels from a week earlier.
That exceeded the 1.5 million-barrel decline forecast in a Reuters survey, adding to concerns over supply disruptions.
Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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