Global oil prices surged by more than 5% following comments from US President Donald Trump that American forces had intercepted and seized an Iran-flagged cargo ship.
The development came shortly after Iran reportedly declared that the Strait of Hormuz would be closed again to commercial vessels, warning that any ship approaching the strategic waterway could be targeted.
As a result, the global benchmark oil price climbed by 5.4% to $95.27 per barrel, while the US benchmark rose by 5.9% to $88.79.
Energy markets have remained highly volatile in recent weeks following military strikes by the US and Israel on Iran, which prompted threats from Tehran to disrupt shipping through the Strait of Hormuz. The waterway is a critical global route, carrying about 20% of the world’s oil and liquefied natural gas supplies.
Just days earlier, oil prices had dropped by 9% after Iran indicated the strait would remain open to commercial vessels during a ceasefire period.
Meanwhile, diplomatic tensions continue, with Trump stating that US representatives are expected in Pakistan for talks on Monday, led by Vice President JD Vance. However, Iran’s state media said Tehran has “no plans for now to participate” in the negotiations, though official confirmation from Iranian authorities is still pending.
Analysts say the market is being driven largely by conflicting signals rather than stable developments on the ground.
“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,” analyst Saul Kavonic of MST Marquee told the BBC.
