North Sea oil prices hit record high as Iran keeps hold over Hormuz

North Sea oil prices hit a record high Thursday as the flow of tankers through the Strait of Hormuz stayed nearly frozen, despite a recently announced ceasefire between the United States and Iran. The strategic waterway, which handles about a third of the world's seaborne oil, has seen traffic drop to less than 10% of its usual volume, according to maritime tracking services.

The ceasefire, intended to de-escalate months of rising tensions, included promises from Iran to stop targeting civilian vessels. But in practice, few ships are testing the waters. Commercial operators remain wary, and insurers are demanding steep premiums for any transit attempts. Satellite data shows a growing queue of tankers idling in the Gulf, waiting for clearer signals before moving.

Washington and Tehran are trading blame. U.S. officials say Iran is using bureaucratic delays and naval posturing to maintain a de facto blockade, while Iranian sources argue that American military presence in the region continues to violate the spirit of the truce. Neither side has reported direct hostilities since the agreement, but the lack of trust is stalling recovery.

The ripple effects are already being felt. European refineries, which rely heavily on Middle Eastern crude delivered via the strait, are adjusting operations. Some have begun drawing down reserves, while others are seeking alternative supplies at higher costs. The price of Brent crude, benchmarked in the North Sea, climbed above $145 per barrel-its highest level ever-reflecting mounting anxiety over sustained supply constraints.

Energy analysts warn that even a partial restoration of traffic may not calm markets quickly. Rebuilding confidence among shipping companies will take time, and any misstep could reignite tensions. "It's not just about physical flow," said one commodities strategist. "It's about whether anyone believes the route is safe enough to bet their cargo on."

Global leaders are urging both sides to clarify their commitments. The United Nations has called for an independent monitoring mechanism, but no agreement has been reached. For now, the world's oil supply remains tethered to a narrow channel where diplomacy is moving slower than a laden tanker.

With summer driving seasons approaching in the Northern Hemisphere, the pressure is growing. If the strait remains clogged, consumers could see higher fuel prices within weeks. For policymakers, the challenge isn't just ending conflict-it's proving that peace can actually move ships.