Oil rises over 3% as Brent settles above $105

Oil drilling rigs

Oil prices surged on Thursday, extending recent sharp gains amid continued closure of the Strait of Hormuz and fears of a breakdown in the ceasefire agreement between the US and Iran.

Brent crude futures for June delivery jumped 3.10%, or $3.16, to $105.07 per barrel, after briefly touching $107.40 during the session.

West Texas Intermediate (WTI) crude futures for June delivery rose 3.11%, or $2.89, to $95.85 per barrel.

The rally came after US President Donald Trump threatened to order naval forces to destroy any vessel attempting to plant mines in the Strait of Hormuz, in response to Iran's video showing special forces boarding a large cargo ship.

While Trump extended the ceasefire this week, reports indicated that Iran’s chief negotiator Mohammad Ghalibaf resigned from the US talks team, a move seen as a win for hardliners opposing peace efforts.

Separately, a Dallas Federal Reserve survey showed that 39% of energy executives expect shipping through Hormuz to normalize by August, while 26% believe recovery may be delayed until November.