A picture taken on March 12, 2017, shows a view of an oil facility in the Khark Island, on the shore of the Gulf.
Atta Kenare | Afp | Getty Images
Brent oil prices jumped more than 3% on Thursday, as tensions run high in the Strait of Hormuz with the U.S. and Iran enforcing blockades.
Brent oil futures rose about 3% to close at $105.07 per barrel. West Texas Intermediate futures advanced around 3% to close at $95.85.
Iran is continuing to demand that ships receive its permission to cross the strait, while President Donald Trump on Thursday claimed that the U.S. has “total control” over the sea lane. Trump said ships need to receive permission from the U.S. Navy to transit the strait.
The U.S. has been enforcing a blockade of Iran’s ports since April 13.
Oil tanker traffic through the strait remains very low as the U.S. and Iran have both seized ships during a fragile ceasefire. Iran detained two cargo ships in the strait on Wednesday, while the U.S. has intercepted several Iranian oil tankers.
Meanwhile, Israel’s defense minister said Thursday that Jerusalem was waiting for the green light from the U.S. to resume the war against Iran and “complete the elimination of the Khamenei dynasty.”
Israel killed Iran’s Supreme Leader Ayatollah Ali Khamenei at the start of the war. He was succeeded by his son Mojtaba Khamenei.
Oil prices also jumped Thursday after Israeli broadcaster N12 reported that Iran’s top negotiator Mohammad Bagher Ghalibaf resigned due to interference from the country’s Revolutionary Guard.
CNBC has not confirmed the report, but possible intervention by the Revolutionary Guard raises market concerns that Tehran will take a harder line during negotiations with the U.S.