Hormuz Gunfire Jolts Oil Markets as US-Iran Ceasefire Extension Falters

Oil prices surged on Wednesday as reports emerged of gunfire attacks on at least three container ships in the Strait of Hormuz, further straining global energy markets. The uptick comes despite a lack of progress in peace talks between the US and Iran.

The US has announced an indefinite extension of its ceasefire with Iran, which had been set to expire earlier this week. However, it remains unclear whether Iran will agree to extend the truce, or if US ally Israel will continue to impose restrictions on ships using the strait.

According to market sources, crude stocks fell by 4.5 million barrels last week, while gasoline and distillate stocks also declined. Analysts estimate a 1.2 million-barrel draw of crude for the week ended April 17.