Oil prices saw a dramatic shift after Donald Trump made a major announcement involving an Iranian vessel amid escalating tensions in the Strait of Hormuz. The development sent energy markets into another round of volatile trading as the ongoing conflict between the US and Iran continues to reshape global oil dynamics.
Oil prices surges after Iranian ship get seized
Global oil prices surged in Monday morning trade in Asia following President Donald Trump’s announcement that the US intercepted and seized an Iran-flagged cargo ship, BBC reports. Brent crude futures climbed 4.74% to $94.66 a barrel. West Texas Intermediate rose 5.6% to $88.55.
Iran said on Saturday it was closing the Strait of Hormuz again to commercial vessels. Tehran warned it would target any ship approaching the waterway. The Islamic Revolution Guard Corps ended a temporary reopening over the US blockade.
Iran said the blockade violated the terms of its ceasefire agreement. Tehran vowed the strait would stay closed until the US ended its naval blockade. Trump had said on Friday that the blockade would continue until both countries agreed on a deal.
Analyst Saul Kavonic from MST Marquee told the BBC, “Oil markets continue to gyrate in response to oscillating social media posts by the US and Iran, rather than the realities on the ground which remain challenging for oil flows to resume in a rapid fashion.”
Energy markets have experienced volatile swings since the US and Israel attacked Iran on 28 February. Brent crude traded under $70 per barrel before the conflict began. On 9 March, it reached almost $120.
Trump said his representatives would be in Pakistan on Monday for negotiations. A White House official confirmed Vice President JD Vance would lead the US delegation. Iran’s state media said Tehran had “no plans for now to participate” in the talks.
The conflict has triggered a global energy crisis with sharp price rises and fuel shortages. Asia relies on Strait of Hormuz shipments for around 90% of its energy needs. The head of the International Energy Agency warned last week that Europe has “maybe six weeks of jet fuel left.”
Originally reported by Vritti Johar on Mandatory.com.
