Crude oil prices rise amid renewed tensions between the US and Iran

Crude oil prices rose more than 5% on April 20 on concerns that a ceasefire between the United States and Iran could be broken after the US seized an Iranian cargo ship.

Traffic through the Strait of Hormuz remained largely at a standstill, Reuters reported.

Brent crude futures were up $5.08, or 5.62%, at $95.46 a barrel by 04:18 GMT, while U.S. West Texas Intermediate crude rose $5.01, or 5.97%, to $88.86 a barrel.

“Within 24 hours of the announcement of a ‘full reopening’ on Friday, tankers were fired upon by the Islamic Revolutionary Guard Corps (IRGC), which has renewed concerns among shipowners trying to exit,” said Jun Guo, senior oil market analyst at Sparta Commodities.

The United States said on Sunday it had seized an Iranian cargo ship that was trying to break the blockade. Iran then said it would retaliate amid growing concerns about renewed hostilities.

“Crude oil markets continue to fluctuate in response to the changing social media posts from the United States and Iran, rather than the realities on the ground. This creates additional challenges for a rapid resumption of crude oil flows,” said Sol Kavonik, head of research at MST Marquee.

Tehran has denied reports that it is preparing a new round of talks with the United States. Iran says reports of possible dialogue are baseless, and Washington’s stance remains inconsistent, with constant shifts in approach and unrealistic demands.

Global wheat prices were reported to have posted their biggest weekly gain in nearly two months as prolonged weather problems and tight fertilizer supplies linked to the Iran war heightened concerns about global supply prospects. Wheat futures on the Chicago Board of Trade rose nearly 5% for the week, their biggest gain since February.

Tags: Iran, prices, USA