FX.co ★ Oil Rises as Hormuz Closed, US-Iran Weigh Truce

WTI crude oil futures climbed above $93 per barrel on Thursday as traders weighed signs that the US and Iran may extend a ceasefire against the impact of a continued dual blockade of the Strait of Hormuz, which is still disrupting crude flows. Both parties are reportedly considering a two‑week extension to allow more time for talks, while traffic through the strategic waterway connecting the Persian Gulf to global markets remains largely at a standstill as the conflict approaches its seventh week.

The US has imposed a blockade to curb Iranian shipments, while Tehran has kept the strait closed to most other vessels and has warned it will halt all regional trade if the restrictions continue. US Defense Secretary Pete Hegseth said American forces remain prepared to resume combat operations if ordered. The conflict has triggered a major supply shock, pushing up inflationary pressures and weighing on economic growth, although prices have retreated from earlier peaks and still remain well above pre‑war levels.