Oil prices rose Wednesday as Iran's Islamic Revolutionary Guard Corps (IRGC) said it had seized two ships in the Strait of Hormuz just hours after U.S. President Donald Trump extended the cease-fire between the two nations.
Brent crude futures, the international benchmark, briefly climbed back above $100 a barrel but were trading at $99.87, up 1.41% in early trading. West Texas Intermediate futures were 1.54% higher at $91.05.
The IRGC's navy intercepted two vessels operating without authorization -- MSC Francesca and Epaminodes -- and took them to Iranian territorial waters, Iran's Tasnim News Agency reported early Wednesday.
"The ships were attempting to exit the Strait of Hormuz covertly when they were detected by IRGC Navy units and intercepted," the report said, citing an IRGC statement.
A gunboat attached to Iran's Islamic Revolutionary Guard Corps (IRGC) fired at a container ship near the coast of Oman, causing "heavy damage" to its bridge, the U.K.'s Maritime Trade Operations said early Wednesday. The maritime security agency also reported an outbound cargo ship being fired at west of Iran.
"UKMTO is aware of high levels of activity in the Strait of Hormuz area and encourages vessels to report any suspicious activity," it said in a warning posted on X.
Trump said the U.S. blockade will remain in place and that the cease-fire will be extended until Iran submits a "unified proposal," or until discussions are concluded "one way or the other," in a Truth Social post late Tuesday.
Peace talks, due to take place in Pakistan, appear to be on hold for now.
The two-week cease-fire agreed earlier this month was due to expire Wednesday. The extension prevents further escalation but ensures traffic through the Strait of Hormuz will remain limited for a while yet.
"Iran is collapsing financially! They want the Strait of Hormuz opened immediately -- Starving for cash! Losing 500 Million Dollars a day," Trump wrote in a separate post.
Iran's Foreign Minister Seyed Abbas Araghchi said the U.S. blockade of Iranian ports "is an act of war and thus a violation of the ceasefire," in a post on X on Tuesday afternoon.
