Oil prices up amid stalemate over next round of peace talks, continued blockade of Strait of Hormuz

Global oil prices traded marginally higher on Thursday morning as a stalemate over the next round of peace talks between the US and Iran persisted, with both countries continuing their respective blockades of the Strait of Hormuz.

At 7:40 am, the June contract of Brent on the Intercontinental Exchange traded at $102.40 per barrel, up 0.48% from its previous close. The May contract of West Texas Intermediate on the NYMEX rose 0.59% to $93.51 a barrel.

With the Strait of Hormuz shut for over 50 days, nearly one-fifth of global oil and gas supplies remain disrupted. Even a modest rise in crude prices threatens to inflate India’s import bill and strain its economy.

Ceasefire, but blockade

Although US president Donald Trump said the ceasefire would continue until the leaders of the concerned countries came up with a “unified proposal”, he did not remove the naval blockade on Iran. In these lines, the US Navy continued to force vessels to return to their ports.

A tweet by the US Central Command on Thursday morning said:

“U.S. forces have directed 31 vessels to turn around or return to port as part of the U.S. blockade against Iran.”

Further, Iran said that blockading ports is a violation of the ceasefire and it would not reopen the strait amid such "ceasefire violations".

In a tweet on Wednesday, Mohammad Bagher Ghalibaf said:

“A complete ceasefire only makes sense if it is not violated by the maritime blockade and the hostage-taking of the world's economy, and if the Zionist warmongering across all fronts is halted; reopening the Strait of Hormuz is impossible with such a flagrant breach of the ceasefire.”

"They did not achieve their goals through military aggression, nor will they through bullying. The only way forward is to recognize the rights of the Iranian nation," he said.

Although Pakistan has been making efforts and hoped for another round of peace talks this week after the last round failed, both the US and Iran have not committed to fresh talks.

India’s exposure

The strait is a critical energy artery for India, traditionally accounting for about 60% of its crude oil imports, nearly 50% of liquefied natural gas (LNG) imports and 90% of liquefied petroleum gas (LPG) imports.

Indian-flagged crude oil tanker Desh Garima, which crossed the Strait of Hormuz on 18 April 2026 carrying 31 Indian seafarers, arrived in Mumbai on Wednesday.

For India, which imports nearly 90% of its crude oil requirement, supply disruptions and price volatility carry significant macroeconomic implications. A $1 per barrel increase in oil prices sustained over a year can raise India’s annual import bill by ₹16,000 crore.

The government has maintained that retail fuel outlets across the country are operating normally.

The Indian basket price of crude stood at $102.46 per barrel as of 21 April. Its average price so far in April is $115.8 per barrel.

The Indian basket represents a derived mix of Sweet grade (Brent Dated) and Sour grade (Oman and Dubai average) crude oil imported by Indian refineries during the month.