Strait of Hormuz Still Closed, Oil Prices Hold Above $105

JAKARTA - World oil prices remain above $105 per barrel after the Strait of Hormuz remained closed. The global oil lifeline is now a source of new problems in the conflict between the United States and Iran.

Citing The Independent, Friday, April 24, Brent rose 0.63 percent to 105.73 US dollars per barrel on Friday. West Texas Intermediate or WTI oil also rose 0.32 percent to 96.17 US dollars.

The increase comes as the US and Iran both seize ships. Iran seized two cargo ships in the Strait of Hormuz on Wednesday and demanded that ships passing through receive Tehran's permission. The US, on the other hand, intercepted a number of Iranian oil tankers and blocked Iranian ports since April 13.

The US-Iran ceasefire is still holding. However, at sea, tensions have not subsided. The conflict has shifted to a blockade to pressure the opponent at the negotiating table.

The Strait of Hormuz is no ordinary passage. Before the war, about 20 million barrels of oil and petroleum products passed through there every day. The head of the International Energy Agency, Fatih Birol, said the world is now facing "the greatest energy security threat in history".

"Today, we are losing 13 million barrels of oil per day and there is a major disruption in vital commodities," Birol told CNBC.

The Commonwealth Bank of Australia assessed that the longer the strait is closed, the greater the economic costs. The bank estimates that political and economic pressures could force one party to back down, although the risk of military escalation remains high.

Asian stock markets were mixed. The MSCI Asia-Pacific index outside Japan rose 0.3 percent, and Japan's Nikkei gained 0.45 percent. However, stocks in South Korea, China, and Hong Kong weakened.

In the futures market, the Nasdaq rose 0.6 percent and the S&P 500 rose 0.1 percent. European futures were pointing to a weaker open.

The money market is relatively calm. The euro fell to 1.1684 US dollars and potentially weakened by almost 0.7 percent in a week. The pound sterling held at 1.3469 US dollars. The Japanese yen moved to 159.78 per US dollar, approaching the 160 level which is often seen as vulnerable to intervention.

Investors are now waiting for decisions from major central banks, including the Federal Reserve, the European Central Bank, and the Bank of England. The focus is clear: how they deal with inflation that is again being pushed down by energy prices.

Meanwhile, the price of gold was relatively stable at 4,691.60 US dollars per ounce.