Oil prices rose on Thursday as markets realized that Iran still controls access to the Strait of Hormuz despite a two-week ceasefire between the United States and Iran. As of 9:51 a.m. ET, U.S. West Texas Intermediate crude oil (WTI) May futures rose more than 6% to $100.27 a barrel; international benchmark Brent crude oil June futures rose nearly 4% to $98.26 a barrel.
The day before, U.S. crude oil had just suffered its largest one-day drop since 2020.
The CEO of Abu Dhabi National Oil Company (ADNOC) said on Thursday that despite the ceasefire agreement, the Strait of Hormuz remains closed to ships due to Iranian restrictions on passage.
Sultan Ahmed Al Jaber posted on social media that Tehran clearly requires ships to obtain Iranian permission before passing through the strait. "This is not freedom of navigation, this is forced control."
The ceasefire agreement is very fragile, and the United States and Iran are in dispute over the terms of the agreement. Iranian Parliament Speaker Qalibaf said on Wednesday that the United States had violated the agreement.
"Our deep-seated distrust of the United States stems from its repeated violations of various commitments - a pattern that is regrettably repeated again," Qalibaf said in a statement on social media.
Qalibaf noted that three of Iran's 10-point ceasefire proposals had been violated: continued Israeli air strikes in Lebanon, a drone entering Iranian airspace, and what he called "the denial of Tehran's right to enrich uranium."
U.S. President Donald Trump said on Tuesday that Iran's proposal could serve as a basis for negotiations. Vice President J.D. Vance responded to the accusations during a visit to Hungary on Wednesday.
"Ceasefire agreements have always been complicated." Vance said regarding the drone intrusion into Iranian airspace. He added that the United States insisted that Iran should not be allowed to enrich uranium and that the ceasefire covering Lebanon was not included in the agreement.