Oil extends gains, brent crosses $126 a barrel mark as Strait of Hormuz remains closed

Oil prices extended their gains as the Iran war was yet nowhere close to a resolution, prolonging the near-closure of the key Strait of Hormuz waterway that has led to global market disruption.

West Texas Intermediate increased 2.6% to $109.64 a barrel, gaining for the fourth day. Brent surged 7%, crossing the $126 a barrel mark.

US President Donald Trump told Axios he will not lift a naval blockade of Iran’s ports until he secures a nuclear deal with Tehran, while Iranian officials have shown no signs of backing down.

The Strait of Hormuz has been effectively closed since the war started at the end of February, choking off flows of crude, natural gas and oil products, and driving up energy prices. On Tuesday, Trump discussed steps the US could take to prolong its blockade while minimizing the impact on American consumers at a meeting with oil and trading executives, the White House said.

Iranian officials remain defiant. Mohsen Rezaee, military adviser to the Supreme Leader, vowed the nation will respond if the US blockade continues, according to state TV. Parliament Speaker Mohammad Bagher Ghalibaf accused Trump of seeking to force Tehran to surrender through economic pressure and internal divisions, Tasnim news agency reported.

Blockades of the Strait of Hormuz by the US and Iran has reduced daily transits to near zero. The Energy Agency called the conflict in the Middle East the biggest supply shock in history, and Vitol Group says the market is facing a supply loss of around 1 billion barrels.