-- Crude benchmarks climbed Wednesday as Iran's seizure of two tankers shattered the brief optimism of a US ceasefire extension.
Front-month West Texas Intermediate crude futures climbed by 2.3% to $91.69 per barrel, while Brent futures jumped about 2% to $100.42/bbl.
Iran seized two ships on Wednesday tightening its control over the world's most critical chokepoint. The escalation comes after President Trump's decision to call off attacks despite no clear path toward restarting peace negotiations.
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 postponed attacks at Pakistan's request, the ongoing blockade and shrinking global stockpiles have intensified supply fears, analysts said.
"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.