Oil prices climbed back above $100 a barrel after reports that Iran intercepted two vessels in the Strait of Hormuz on Wednesday over alleged violations following a ceasefire decision announced by the United States.
International benchmark Brent crude traded at $100.48 per barrel at 3.49 p.m. local time (1249 GMT), up around 2.03% from the previous close of $98.48.
US benchmark West Texas Intermediate increased about 1.2% to $91.56 per barrel, compared with $90.51 in the previous session.
US President Donald Trump on Tuesday extended the two-week ceasefire with Iran to allow time for Tehran to prepare a “unified proposal,” following a request from Pakistani officials.
The intense diplomatic efforts by Islamabad are aimed at smoothing the way for a second round of US-Iran talks, expected soon in the Pakistani capital.
However, Iran’s Islamic Revolutionary Guard Corps (IRGC) said its naval forces intercepted two vessels in the Strait of Hormuz on Wednesday over alleged violations.
In a statement, the IRGC Navy said the vessels – identified as MSC Francesca, which it described as “linked to Israel,” and Epaminodes – were stopped for repeated violations, including operating without authorization and allegedly tampering with navigation systems.
The force said the vessels were attempting to exit the strait “covertly” and were intercepted based on intelligence monitoring.
According to the statement, both vessels have been transferred to Iranian territorial waters for inspection of their cargo and documentation.
Expectations that the ceasefire could hold capped gains, but tensions on the ground and conflicting statements increased volatility in oil markets, driving prices back toward the $100 level.
