Oil jumps as Hormuz fears return
Prices surge on renewed supply disruption concerns
Oil prices surged more than 6% after reports that the Strait of Hormuz had been closed again, reversing sharp losses from the prior session and stoking fears of renewed supply disruptions. Brent crude rose about $6.11 to $96.49 a barrel and U.S. West Texas Intermediate climbed roughly $6.53 to $90.38 as traders repriced the market for heightened geopolitical risk.
The rebound followed conflicting claims from Washington and Tehran that the other side had violated a ceasefire by attacking ships over the weekend. U.S. officials said the U.S. military seized an Iranian cargo vessel that tried to breach a blockade, while Iran announced it would not take part in further peace talks amid threats of renewed strikes. The United States has been enforcing a blockade of Iranian ports, and Iran has alternately lifted and reimposed restrictions on passage through the Strait, which previously carried about one-fifth of global oil flows before the conflict began.
Markets reacted to the potential for constrained tanker movements and higher insurance and shipping costs, with analysts warning that even intermittent closures of the chokepoint can sharply tighten available supply. Shipping firms are reported to be reassessing routes and premiums, and energy agencies and governments are closely monitoring developments for signs of escalation.
Observers say a prolonged or recurring closure could push fuel prices higher worldwide, add inflationary pressure and complicate supply chains for import-dependent countries. For now, traders remain on edge and the situation is being watched for diplomatic or military actions that would determine whether normal passage can be restored.
