Global crude oil prices advanced on Thursday after Iran tightened its control over tanker movements through the Strait of Hormuz, rekindling concerns over supply security in one of the world's most strategic oil transit routes. As at the time of writing 7:30 a.m. (WAT), Brent crude traded at $72.19 per barrel, up 0.54%, while West Texas Intermediate (WTI) rose 0.39% to $68.96 per barrel, recovering part of the losses recorded after last week's sharp market sell-off.
The price rebound followed a directive from Iran's joint military command requiring all oil tankers passing through the Strait of Hormuz to sail only on routes approved by Tehran. Iranian authorities warned that any vessel ignoring the directive could face an "immediate and forceful response," while also cautioning that any U.S. interference in the waterway would attract a "rapid and decisive reaction."
The development comes despite ongoing diplomatic efforts between Washington and Tehran. Negotiators from both countries met in Qatar on Wednesday in a fresh attempt to build on last month's interim agreement that eased tensions following the recent conflict.
Although the talks reportedly made progress, further negotiations are expected only after the funeral ceremonies for Iran's Supreme Leader, Ayatollah Ali Khamenei.
The latest warning has challenged growing market optimism that shipping through the Strait of Hormuz had fully normalised. While vessel movements have improved from the near paralysis witnessed during the height of the conflict, traffic remains well below historical levels, indicating that confidence has yet to return fully to the region.
Iran has maintained that it possesses the authority to regulate navigation through the Strait and intends to impose transit charges once the current 60-day toll-free arrangement expires. The United States and Gulf Arab states, however, reject that position, insisting that the Strait remains an international waterway that should remain open to unrestricted commercial navigation.
The disagreement has reintroduced geopolitical risk into the oil market at a time when traders were increasingly pricing in stronger Gulf exports and a more comfortable global supply outlook. Analysts say any disruption to shipping through the Strait could quickly tighten crude supplies, increase freight costs and trigger another wave of volatility across international energy markets.
The Strait of Hormuz handles roughly one-fifth of the world's seaborne crude oil trade, making it the single most important oil chokepoint globally. For major crude importers and fuel-dependent economies such as Nigeria, any sustained escalation around the corridor could influence international crude benchmarks, refined product prices and ultimately domestic fuel pricing in the weeks ahead.