Energy Markets Defy Trump’s Ceasefire Extension as Brent Crude Hovers Near $100 Amid Hormuz Blockade

Brent crude hits $100 as the U.S. extends its Iran ceasefire but maintains the Hormuz blockade, fueling global energy supply fears and economic uncertainty.

By: AXL Media

Published: Apr 22, 2026, 7:29 AM EDT

Source: Information for this report was sourced from AFP

Market Skepticism Overshadows Diplomatic Extension

Global energy markets responded with cautious volatility on Wednesday following President Donald Trump’s announcement that the U.S. would extend its ceasefire with Iran. While the move was intended to provide a diplomatic bridge for Tehran to submit a "unified peace proposal," the immediate reaction in oil pits was one of persistent anxiety. Brent North Sea crude, the international benchmark, continued to fluctuate near the psychologically significant $100-a-barrel threshold, while West Texas Intermediate (WTI) traded above $90. The rise in prices, despite the temporary halt in active hostilities, suggests that investors are looking past the political rhetoric toward the physical realities of a stalled global supply chain.

The Economic Toll of the Hormuz Blockade

A critical factor preventing a meaningful drop in energy costs is the continued U.S. naval blockade of the Strait of Hormuz. In his statement on Truth Social, President Trump clarified that while the ceasefire was being extended at the request of Pakistani mediators, the military blockade would remain in full force. This maritime chokehold has effectively paralyzed one-fifth of the world’s oil supply and nearly all of Qatar’s liquefied natural gas (LNG) exports. Analysts note that as long as the Strait remains "in limbo," the risk premium embedded in fuel prices will remain high, regardless of the absence of active missile strikes or drone attacks.

Strategic Impact on Global Manufacturing and Transport

Susannah Streeter, the chief investment strategist at Wealth Club, emphasized that the ceasefire extension has done little to mitigate the "energy squeeze" currently gripping the global economy. Streeter observed that shipments from the Middle East are essentially frozen, leaving refiners and airlines scrambling to secure alternative fuel sources. This scarcity has triggered a ripple effect across Europe and Asia, where stock markets have eased on the uncertainty of rising operational costs. The industrial sector, particularly in countries reliant on Middle Eastern urea and fertilizer, is already bracing for a summer of high overheads and potential production slowdowns.