Media: Oil prices steady as Strait of Hormuz tensions keep markets on edge

Oil prices ended little changed after Iranian state media reported that about 30 vessels had crossed the Strait of Hormuz, though renewed attacks on one ship and the seizure of another continued to fuel concerns over energy supply flows amid the Iran war, Reuters reports.

Brent crude oil futures settled up 9 cents, or 0.09%, at $105.72 a barrel. The global benchmark touched a session high of $107.13 but spent much of the trading day in negative territory. US West Texas Intermediate futures settled at $101.17, up 15 cents or 0.15%.

On May 13, Brent crude futures fell by more than $2 a barrel, while WTI dropped more than $1, as investors weighed the potential impact of US interest rate hikes aimed at curbing inflation.

Three people familiar with White House discussions told Reuters that officials are scrambling to contain the economic and political fallout of the war with Iran.

During talks between US President Donald Trump and Chinese President Xi Jinping, the White House said both leaders agreed that the Strait of Hormuz must remain open for the free flow of energy. Xi, according to the statement, said the “rejuvenation of China” and “Make America Great Again” can go hand in hand.

“Many are wondering if Iran is allowing the ships to pass to not tip the scales of the talks away from China’s protection of Iran,” said Tim Snyder, chief economist at Matador Economics.

According to the White House, Xi also expressed interest in purchasing more US oil to reduce China’s dependence on the Strait of Hormuz. China, traditionally a limited buyer of US crude, has not imported any since May 2025 due to a 20% import tariff imposed during the trade war.

Iran’s Revolutionary Guards said 30 vessels had crossed the strait since May 13 evening, still far below the typical daily volume of about 140 vessels before the war.

Tehran has also appeared to tighten control over the waterway, striking arrangements with Iraq and Pakistan to export oil and liquefied natural gas from the region.

Iran’s semi-official Fars news agency cited a source saying Iran had begun allowing transit for some Chinese vessels. Before that report, a Chinese supertanker carrying 2 million barrels of Iraqi crude sailed through the strait on May 13 after being stranded in the Gulf for more than two months.

A Panama-flagged crude oil tanker managed by Japanese refining group Eneos (5020.T) also passed through the strait, according to ship-tracking data from LSEG. It marked the second instance of a Japan-linked oil vessel successfully transiting the route.

However, tensions at sea remain elevated. An Indian cargo vessel carrying livestock from Africa to the United Arab Emirates was sunk off the coast of Oman on May 14, while the UK Maritime Trade Operations (UKMTO) reported that “unauthorised personnel” had boarded a ship anchored off the UAE port of Fujairah and were steering it toward Iran.

“The growing number of vessels allowed through has a more tangible impact on sentiment than on the actual supply-demand balance,” said Tamas Varga, oil market analyst at PVM. “Whilst it might contribute to setting a price ceiling in the immediate future, it is not the desired recipe to send oil prices meaningfully lower.”

Citing the war and the partial closure of the strait, the International Monetary Fund said the global economy is moving into a middle “adverse scenario,” under which global real GDP growth would fall to 2.5% this year, down from 3.4% in 2025.

The International Energy Agency warned on May 13 that global oil supply will fall short of demand this year, with inventories being drawn down at an unprecedented pace.

Separately, the US Energy Information Administration (EIA) reported that US crude inventories fell by 4.3 million barrels to 452.9 million barrels for the week ended May 8, driven by rising exports. Distillate stockpiles, however, rose, defying expectations of a draw.

By Vafa Guliyeva