A photo taken on March 12, 2017 shows a view of an oil facility at Khark Island on the coast of the Gulf.
flour edge AFP | getty images
Brent oil prices rose more than 3% on Thursday as tensions rose in the Strait of Hormuz due to the US and Iran imposing a blockade.
brent Oil futures closed nearly 3% higher at $105.07 a barrel. West Texas Intermediate Futures closed nearly 3% higher at $95.85.
Iran continues to demand that ships be allowed to transit the strait, while President Donald Trump claimed on Thursday that the US has “complete control” over the sea route. Trump said ships would have to seek permission from the US Navy to transit the strait.
America is blockading Iran’s ports since April 13.
There is little movement of oil tankers through the strait because both the US and Iran have seized ships during the fragile ceasefire. Iran detained two cargo ships in the strait on Wednesday, while the US detained several Iranian oil tankers.
Meanwhile, Israel’s defense minister said on Thursday that Jerusalem was waiting for the green light from the US to resume war against Iran and “complete the elimination of the Khamenei dynasty”.
Israel killed Iran’s supreme leader Ayatollah Ali Khamenei at the beginning of the war. He was succeeded by his son Mojtaba Khamenei.
Oil prices also jumped after Israeli broadcaster N12 reported on Thursday that Iran’s top negotiator Mohammad Bagher Ghalibaf resigned due to interference from the country’s Revolutionary Guard.
CNBC has not confirmed the report, but the possible intervention by the Revolutionary Guard has raised market concerns that Tehran will take a tough stance during talks with the US.
