Oil prices jumped 4 percent on Thursday after Iran vowed not to reopen the Strait of Hormuz while a US naval blockade remains in place, despite President Donald Trump’s extension of the two-week ceasefire.
Brent North Sea crude rose 3.62 percent to $105.63 a barrel around 0025 GMT — the first time the international benchmark has crossed $100 since the conflict began. US benchmark West Texas Intermediate climbed 4.06 percent to $96.73. Both eased back slightly in the following minutes.
Iran’s chief negotiator has said it is “not possible” to reopen Hormuz, citing what Tehran describes as “blatant violations” of the ceasefire by the United States and Israel. Iran has separately seized two cargo vessels this week, and state television has not recognised the ceasefire framework.
The price move reverses the modest easing seen after Trump’s announcement on Tuesday that the truce would be extended to allow more time for Pakistani-brokered peace talks. Iran said it welcomed Pakistan’s mediation effort but made no other comment on the extension.
Oil has climbed steadily since Israel and the United States struck Iran on February 28, with traders pricing in the risk that the war resumes. The $105 threshold restores the price environment Sri Lanka’s import bill faced at the peak of the Hormuz closure.
The surge comes as Ceylon Petroleum Corporation confirmed the arrival of a 9,500-tonne diesel shipment on April 27 and a 35,000-tonne petrol cargo before the end of April. Brent’s return above $100 narrows the fiscal space for any near-term consumer fuel price cut.
