Oil prices remained above $100 a barrel on Thursday after Iran seized two container ships in the Strait of Hormuz and peace talks with the United States stalled. Brent crude edged down 15 cents to $101.76, while West Texas Intermediate slipped 14 cents to $92.82, following sharp gains on Wednesday driven by larger-than-expected draws in US fuel stocks.
Iranian forces seized the vessels attempting to exit the Gulf via the strait, through which about a fifth of global daily oil and LNG flowed before the war began in late February. The move tightens Tehran's grip on the waterway as US-Iran negotiations remain deadlocked. Iranian parliament speaker Mohammad Baqer Qalibaf insisted a full ceasefire required the lifting of the US naval blockade on Iran's ports.
Despite the escalating tensions, Asian equity markets surged to record highs, tracking Wall Street's gains driven by strong corporate earnings. Japan's Nikkei crossed 60,000 points for the first time, and MSCI's broadest index of Asia-Pacific shares outside Japan rallied 1 percent to a record. China's blue chips rose 0.3 percent, though Hong Kong's Hang Seng slipped 0.3 percent.
Analysts warned of a growing disconnect between buoyant markets and rising geopolitical risks. Laura Cooper of Nuveen said, “The dissonance cannot hold indefinitely. At some point, the weight of what is being ignored could become the only one that matters.” Skye Masters of National Australia Bank questioned whether markets were correctly pricing persistent supply constraints.
On the earnings front, GE Vernova surged after raising its annual revenue forecast on AI-driven demand, while Boeing advanced on a smaller-than-expected quarterly loss. Tesla reported a surprise positive free cash flow but shares fell after the bell on scepticism about higher spending on AI and robotics. US oil exports climbed to a record 12.88 million barrels per day, as Asian and European countries replaced disrupted Middle East flows, according to the Energy Information Administration.
