-- Oil prices gained on Wednesday after Iran seized two vessels in the Strait of Hormuz, just hours after President Trump indefinitely delayed military strikes.
Front-month Murban crude futures climbed by 4.9% to $100.99 per barrel, while Brent futures rose 1.8% to $100.24/bbl.
The vessel seizure signalled a hardening of Tehran's stance as the naval blockade continues to paralyze regional energy flows, analysts said.
US President Donald Trump said Tuesday he extended the ceasefire with Iran while maintaining a blockade, delaying planned military action as negotiations remain uncertain.
Trump said in a Truth Social post, "... upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal."
While President Trump delayed military action against Iran at Pakistan's request, the continued closure of the Strait of Hormuz is suppressing global demand.
"The conflict is curbing supply, with demand destruction near 4 million barrels per day and possibly rising to 5 million mainly impacting Asia," Saxo Bank analysts said.
On the supply side, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories declined by 4.40 million barrels in the week ended April 17.
The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.