By: Economy Middle east

Oil prices extended their gains on Thursday, supported by the lack of progress in renewed U.S.-Iran negotiations, while tanker traffic through the Strait of Hormuz remained limited following recent vessel attacks.

As of 4:12 GMT, Brent crude futures gained $1.39 or 1.36 percent to $103.3 per barrel, after closing above the $100 mark for the first time in over two weeks on Wednesday. Meanwhile, West Texas Intermediate futures gained $1.50 or 1.61 percent to $94.46.

Strait of Hormuz restrictions continue

Oil prices surged by more than $3 on Wednesday, driven by sharper-than-expected declines in U.S. gasoline and distillate inventories, as well as continued stalemate in peace negotiations.

Although U.S. President Donald Trump extended a ceasefire following mediation efforts by Pakistan, restrictions on vessel movement through the Strait of Hormuz remain in place by both Washington and Tehran. The waterway had previously accounted for roughly 20 percent of global daily oil and liquefied natural gas shipments before hostilities erupted in late February, triggered by U.S. and Israeli strikes on Iran.

Tensions escalated further after Iran seized two vessels in the Strait on Wednesday, reinforcing its control over the critical passage. Meanwhile, Trump has upheld a U.S. naval blockade targeting Iran’s maritime trade, with Iranian parliament speaker and chief negotiator Mohammad Baqer Qalibaf stating that a comprehensive ceasefire would only be viable if the blockade were lifted.

U.S. energy exports hit record 12.88 million bpd

Oil prices rose as U.S. exports of crude oil and refined products increased by 137,000 barrels per day, reaching a record 12.88 million bpd, as buyers in Asia and Europe ramped up purchases amid supply disruptions linked to the Iran conflict.

Data from the Energy Information Administration on Wednesday showed a rise in U.S. crude inventories, while gasoline and distillate stocks declined. Crude stockpiles increased by 1.9 million barrels, while gasoline inventories dropped by 4.6 million barrels, significantly exceeding expectations for a 1.5 million-barrel decline.

Meanwhile, distillate stockpiles fell by 3.4 million barrels, compared with forecasts for a 2.5 million-barrel decrease.