Oil price surge continues to shake global energy markets. Brent crude futures jumped more than 7% on Monday. The main international benchmark later settled at $94.69 per barrel. That is a sharp rise from below $90.40 last week.
Iran announced a complete closure of the Strait of Hormuz. This strategic waterway handles 25% of seaborne oil trade. It also carries 20% of the world’s liquefied natural gas. Tehran called the move retaliation. The United States had kept a blockade on Iranian vessels and ports. Washington’s action violated an April 7 ceasefire, according to Iran.
The Islamic Revolution Guards Corps issued a strict warning. Any trespassing vessel would face consequences. The IRGC said transit attempts would mean cooperating with the enemy. This raised fears of military confrontation.
Before the closure, Iran and the United States held talks in Islamabad, Pakistan. Those discussions happened earlier this month. Tehran later said Washington refused to drop excessive demands. That failure stopped any deal. Still, Iran opened the strait as a goodwill gesture. That gesture followed a halt of attacks on Lebanon.
US President Donald Trump then announced the blockade would continue. This decision prompted the current strait closure. It also left future negotiations uncertain. Tehran now sets clear conditions. The strait will reopen only after the blockade ends. Further talks depend on a mutual understanding framework.
Observers warn of more market instability. The ceasefire between Iran and the United States expires on Wednesday. Many fear a renewed escalation. That could trigger another oil price surge. Governments worldwide are already feeling the strain. Higher fuel costs affect transport, manufacturing, and heating.
Disruptions in the Strait of Hormuz directly hit supply chains. Before this crisis, daily transit averaged 138 vessels. Now that flow has stopped. Energy companies face shipping delays. Insurers have raised premiums for tankers in the Gulf region.
Some governments have tapped emergency petroleum reserves. Others introduced energy-saving measures. European nations seek alternative routes. Asian importers worry about crude availability. The oil price surge adds to global inflationary pressures.
Analysts see no quick resolution. Tehran insists on blockade removal. Washington shows no sign of backing down. For now, the strait remains shut. Traders expect volatile prices until Wednesday at least. A diplomatic breakthrough looks unlikely. Therefore, the oil price surge may continue into next week.