International oil prices rise on Iranian military's seizure of ships in Hormuz...Brent reaches $100

Ships in the Strait of Hormuz

Brent crude prices rose above the $100 per barrel mark again on the 22nd (local time) following news that Iran's Islamic Revolutionary Guard Corps (IRGC) seized ships attempting to pass through the Strait of Hormuz.

On this day, the closing price for June delivery Brent crude futures on the ICE Futures Exchange was $101.91 per barrel, up 3.5% from the previous session.

On the New York Mercantile Exchange, the closing price for June delivery of West Texas Intermediate (WTI) crude was $92.96 per barrel, up 3.7% from the previous session.

The IRGC Navy announced that it had seized two container ships, MSC-Francesca and Defaminodas, in Iranian territorial waters for inspection of cargo and related documents, claiming they attempted to secretly exit the Strait of Hormuz without permission from the Iranian military.

Iran's Mehr news agency reported that the container ship Euphoria was also seized by the IRGC Navy while passing through the Strait of Hormuz.

The UK Maritime Trade Operations (UKMTO) announced that one ship in the Strait of Hormuz was attacked by IRGC fast-attack craft on this day.

Iran's seizure of ships occurred the day after US President Donald Trump declared an extension of the "two-week truce" with Iran, one day before its expiration. President Trump had previously stated that the naval blockade against Iran and other readiness measures would continue.

With peace talks deadlocked due to Iran's opposition to the US naval blockade, the Iranian navy's seizure of ships is interpreted as Iran's intention to continue using its control over the Strait of Hormuz as leverage in truce negotiations.

Giovanni Staunovo, a commodity analyst at Swiss bank UBS, analyzed, "As long as transit through the Strait of Hormuz remains restricted, the tightening of oil market supply will continue, and oil prices will maintain their support."

The U.S. Energy Information Administration (EIA) announced that as of April 17, U.S. gasoline inventories decreased by 4.6 million barrels from the previous week to 228.4 million barrels.

The decline, which exceeded the 1.5 million barrel reduction compiled by Reuters, contributed to increasing concerns about supply disruptions.