Global oil prices surged during Monday’s early Asian trading session as tensions intensified between the United States and Iran surrounding the Strait of Hormuz waterway.
Sharp Rise in Crude Benchmarks
Brent crude futures climbed 6.4% to $96.13, while West Texas Intermediate advanced 7.5% to $90.15. This rebound followed a sharp decline on Friday, when prices dropped after Iranian officials declared the strait fully open to commercial shipping during the ongoing US-Iran ceasefire period.
Context of Market Volatility
Energy markets have experienced significant fluctuations since the US and Israel conducted strikes on Iran on February 28. Iran responded with warnings to disrupt shipping in the Strait of Hormuz, a critical chokepoint for roughly 20% of the world’s oil and liquefied natural gas supplies.
Latest Developments
On Sunday, President Donald Trump announced that US forces had intercepted and seized an Iranian-flagged cargo ship attempting to navigate past the blockade of Iran’s ports. Trump also revealed that his representatives would travel to Pakistan on Monday for negotiations.
A White House official confirmed that Vice President JD Vance would head the US delegation. However, Iranian state media indicated that Tehran currently has no plans to join the talks, though officials continue to outline the nation’s stance.
