Oil prices climb to $110 as Trump's Iran deadline extension fails to allay supply fears

Oil prices were higher on Friday as U.S. President Donald Trump's move to give Iran a 10-day extension to open the strategically vital Strait of Hormuz failed to soothe supply concerns.

International benchmark Brent crude futures with May delivery rose 1.8% to $109.93 per barrel, paring gains after briefly climbing above $110, while U.S. West Texas Intermediate futures with May delivery advanced 1.6% to $96.01.

Trump said in a social media post on Thursday that talks with Iran were "going very well" despite "erroneous statements to the contrary by the Fake News Media, and others."

As part of the announcement, the U.S. president said he would pause attacks on Iran's energy infrastructure through to April 6. Iran has not yet commented on Trump's latest remarks.

Oil prices since the start of the year

Speaking during a Cabinet meeting on Thursday, Trump also said that Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week as a "present" to the U.S.

"They said, 'To show you the fact that we're real and solid and we're there, we're going to let you have eight boats of oil ... and they'll sail up tomorrow,'" Trump said, referring to Iran.

He added that the shipment ultimately grew larger. "They then apologized for something they said, and they said, 'We're going to send two more boats.' And [it] ended up being 10 boats," he said.

Markets have been closely monitoring developments in the Strait of Hormuz for signs of disruption or de-escalation, as tensions between Washington and Tehran continue to inject volatility into energy prices. The strait is a vital artery for global crude flows.

Trump's remarks suggest that at least some oil shipments are continuing to move through the waterway, potentially easing immediate supply concerns.

However, analysts cautioned that the broader oil market remains increasingly fragile, even if isolated shipments resume.

"The oil market did not underreact to the disruption in the Strait of Hormuz; it absorbed it," said Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy.

"For nearly four weeks, markets have shown remarkable resilience … supported by a combination of pre-war surplus, crude-on-water, and policy barrels that provided a temporary buffer and kept prices contained. That phase is now ending," she said.

According to Rystad, the global system has shifted from "buffered to fragile" after weeks of supply losses and inventory drawdowns, leaving little room to absorb further shocks.

Nearly 17.8 million barrels per day of oil and fuel flows through the Strait of Hormuz have been disrupted, the firm estimated, with close to 500 million barrels of total liquids lost so far.