Oil prices surge as Strait of Hormuz remains effectively closed. West Texas Intermediate crude futures gained 2.2% to $100.04 per barrel Friday, while Brent crude rose 1.7% to $97.59, despite a U.S.-Iran ceasefire agreement that was supposed to reopen the vital shipping lane. The strait, which handles roughly 20% of global oil supply, continues operating at a near standstill. Supply concerns intensified after Iranian attacks damaged Saudi Arabia's energy infrastructure, cutting oil output capacity by approximately 600,000 barrels daily and reducing East-West Pipeline flows by around 700,000 barrels per day. Shipping operators report significant confusion about transit procedures and face substantial costs navigating alternative routes. President Trump warned Iran against charging tankers for passage, risking the ceasefire agreement.
