Oil markets took a sharp turn upward on Thursday morning as traders faced the reality that the Strait of Hormuz remains under Iranian control, despite a two-week-old ceasefire agreement with the United States.
The sudden price spike follows a brief period of optimism, effectively erasing the massive losses seen just twenty-four hours ago, when U.S. crude suffered its steepest one-day drop in six years.
U.S. West Texas Intermediate crude futures for May jumped more than 6%, trading at $101.00 per barrel. International benchmark Brent crude for June delivery followed suit, climbing nearly 4% to reach $98.80.
The catalyst for the rally appears to be a direct bottleneck in the world’s most vital oil artery. Dr. Sultan Ahmed Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC), confirmed Thursday that the Strait of Hormuz has not reopened to normal ship traffic.
According to Al Jaber, Tehran still requires ships to obtain explicit permission to pass through the waterway.
“That is not freedom of navigation. That is coercion,” Al Jaber stated on LinkedIn, noting that Iran continues to restrict access regardless of the truce.
The diplomatic foundation of the ceasefire is also showing signs of collapse. On Wednesday, Mohammad Bagher Ghalibaf, the speaker of Iran’s parliament, accused Washington of breaching the agreement. Ghalibaf cited three specific violations: continued Israeli strikes in Lebanon, a drone entering Iranian airspace, and the denial of Iran’s right to enrich uranium.
“The deep historical distrust we hold toward the United States stems from its repeated violations of all forms of commitments — a pattern that has regrettably been repeated once again,” Ghalibaf said.
While President Donald Trump previously suggested Iran’s 10-point proposal could serve as a framework for negotiations, Vice President JD Vance offered a blunter assessment from Hungary on Wednesday. Vance characterized the friction as par for the course, stating, “Ceasefires are always messy.”
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Addressing the specific allegations, Vance noted that the U.S. remains firm on its stance that Iran cannot enrich uranium and clarified that any ceasefire involving Lebanon was never part of the original deal.
As both nations trade accusations of bad faith, the physical blockage of the Strait continues to push energy prices toward levels not seen in years.
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