A photo taken on March 12, 2017 shows a view of an oil facility on Kirk Island in the Gulf.
Atta Kenare | AFP | Getty Images
Brent crude oil prices rose more than 3% on Thursday as tensions in the Strait of Hormuz escalate due to the blockade by the United States and Iran.
brent Crude oil futures rose about 3% to close at $105.07 per barrel. west texas intermediate Futures rose about 3% to close at $95.85.
Iran continues to seek permission for ships to cross the strait, but President Donald Trump insisted Thursday that the United States has “full control” of the sea lanes. President Trump said ships would need permission from the U.S. Navy to pass through the strait.
The United States has tightened its blockade of Iranian ports since April 13th.
Oil tanker traffic through the strait remains very low as the US and Iran have seized ships during an uneasy ceasefire. Iran seized two cargo ships in the strait on Wednesday, and the United States seized several Iranian oil tankers.
Meanwhile, Israel’s defense minister said Thursday that Jerusalem is waiting for the green light from the United States to resume war against Iran and “completely eliminate the Khamenei dynasty.”
Israel killed Iran’s supreme leader Ayatollah Khamenei at the start of the war. He was succeeded by his son Mojtaba Khamenei.
Oil prices also rose on Thursday after Israeli broadcaster N12 reported that Iran’s chief negotiator Mohammad Bagher Ghalibaf had resigned over interference from the Revolutionary Guards.
Although CNBC did not confirm the report, the potential intervention by the Revolutionary Guards has raised market concerns that the Iranian government will take a more assertive stance in negotiations with the United States.
