Global oil prices saw an increase on Thursday as the United States and Iran faced a deadlock in their peace talks, leading to the closure of the Strait of Hormuz. Brent’s June contract on the Intercontinental Exchange traded at $103.35 a barrel, marking a 4% rise from the previous close. Additionally, the June futures contract for West Texas Intermediate on the New York Mercantile Exchange (NYMEX) climbed 1.62% to $94.47 a barrel.
US President Donald Trump extended the ceasefire, awaiting a unified proposal from the concerned countries, but maintained the naval blockade on Iran. US forces have instructed 31 vessels to change course or return to port as part of the blockade.
The closure of the strait for over 50 days has disrupted nearly one fifth of global oil and gas supplies, potentially impacting India’s import bill and economy. Despite this, the government assured that retail fuel outlets in the country are functioning normally.
Tehran’s negotiators are reportedly skipping talks with the US, deeming negotiations as futile. Consequently, US Vice President JD Vance postponed his trip for the peace talks. Iran’s navy announced the seizure of two container ships in the Strait of Hormuz.
The Indian-flagged crude oil tanker Desh Garima, carrying 31 Indian seafarers, successfully crossed the Strait of Hormuz and arrived in Mumbai. The Indian basket price of crude, comprising a mix of Sweet grade (Brent Dated) and Sour grade (Oman and Dubai average), stood at $102.46 per barrel as of April 21, with an average price of $115.8 per barrel in April.
