ISLAMABAD: Global oil prices jumped sharply on Monday after tensions between the United States and Iran intensified, raising fears of supply disruptions in the Middle East.
The surge follows Iran’s renewed closure of the strategic Strait of Hormuz, a key route for nearly 20% of global oil and LNG trade, in response to a US naval blockade of its ports. The situation worsened after a US destroyer fired on and seized an Iranian vessel attempting to bypass the blockade, prompting Tehran to warn of retaliation.
Benchmark crude prices rebounded strongly, with West Texas Intermediate rising over 7% and Brent Crude gaining more than 6%, reversing last week’s sharp losses when hopes of a ceasefire briefly eased markets.
Diplomatic efforts remain fragile. Former US President Donald Trump said a deal with Iran was close, but Tehran rejected key demands and signaled it may skip upcoming talks in Islamabad, citing the US blockade as a major obstacle.
With only one inconclusive round of negotiations held so far and the ceasefire nearing its end, uncertainty continues to grip global markets, keeping investors on edge over potential further escalation.
