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By Ayo Kehinde
Global oil prices rose sharply on Monday after renewed hostilities between the United States and Iran triggered the closure of the Strait of Hormuz, sending fresh shockwaves through energy markets and raising concerns about global supply disruptions.
Brent crude rose $6.11, or 6.76%, to $96.49 a barrel, while U.S. West Texas Intermediate (WTI) rose $6.53, or 7.79%, to $90.38 a barrel at 2327 GMT. The rebound followed a sharp decline of more than 9% on Friday, underscoring the extreme volatility tied directly to the fragile and collapsing ceasefire agreement.
The latest price rise was triggered after both Washington and Tehran accused each other of violating the ceasefire by attacking ships over the weekend, effectively derailing diplomatic progress and forcing the strategic waterway to close again.
The Strait of Hormuz remains one of the most critical arteries for global energy supplies, historically accounting for nearly 20% of global oil shipments. Its renewed closure signals a significant threat to already strained supply chains just two months into the conflict.
US President Donald Trump said American forces had seized an Iranian cargo ship attempting to breach the US-imposed blockade, further escalating tensions. In response, Iran announced it would withdraw from planned peace talks, dimming prospects for an immediate easing of tension.
The United States continued its blockade of Iranian ports, while Iran alternated between lifting and reimposing restrictions on the Strait.
Friday’s market plunge followed the announcement that the Strait would remain open during the ceasefire, with assurances that Iran would not disrupt the passage. However, the breakdown of that agreement has now exposed the fragility of those commitments.
Although more than 20 ships passed through the Strait on Saturday (the highest traffic since early March), the renewed disruption highlights the enormous influence of geopolitical risk on global energy markets, where even short-lived escalations can trigger dramatic price swings.
