US Marines aboard USS New Orleans watch in the Arabian Sea during naval blockade operations against Iran.
Oil prices extended their rally on Friday as geopolitical tensions around Strait of Hormuz remained unresolved, with both Iran and the United States showing no signs of de-escalation.
Brent crude futures for July rose about $1 to $111 a barrel, while US West Texas Intermediate (WTI) gained 41 cents to $105.48. The latest increase comes amid a prolonged standoff that has effectively choked a key global energy artery, keeping markets on edge.
The ongoing crisis follows months of escalation since late February, when US and Israeli strikes on Iran triggered retaliatory measures, including Tehran’s continued closure of the Strait of Hormuz — a passage that typically handles about one-fifth of global oil and liquefied natural gas flows. Brent prices have surged sharply since then, including a 50% jump in March alone, and remain near multi-year highs after June contracts touched $126.41 per barrel, the highest level since March 2022.
Investor sentiment was further rattled after a senior official from Iran’s Islamic Revolutionary Guard Corps warned of “long and painful strikes” against US positions if Washington resumes military action. The remarks echoed a hardening stance from Iran’s leadership, including statements attributed to Supreme Leader Ali Khamenei, reinforcing expectations of a prolonged confrontation.
On the US side, President Donald Trump was reported to be in high-level consultations with top military officials to review contingency plans related to the conflict.
The continued US naval presence in the region, including measures effectively blocking Iranian crude exports, has added another layer of complexity to the standoff. As of April 30, As of today, 44 commercial vessels have been directed to turn around or return to port by the US Navy.
Despite periodic market pullbacks, analysts say the absence of diplomatic progress is sustaining a risk premium in oil prices.
“With neither side backing down and critical supply routes disrupted, volatility is likely to persist,” market observers noted.
The ripple effects are already being felt in consumer markets. In the United States, gasoline prices remain elevated, with national averages hovering above $4 per gallon, while regions such as California are experiencing even sharper increases amid tighter supply conditions.