Brent Surges

Brent crude futures surged nearly 7% to above $96 per barrel on Monday, reversing losses from the previous session as geopolitical tensions flared again in the Middle East. The rally followed remarks from President Donald Trump that the US Navy fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored orders to stop while exiting Hormuz. Tehran also targeted ships and reasserted control over the Strait of Hormuz, arguing that the US blockade on Iran-linked vessels violated the ceasefire agreement. While momentum toward a lasting peace had been building late last week, uncertainty has since resurfaced, even as Trump said US negotiators would head to Pakistan on Monday for another round of talks. The prolonged conflict has triggered a historic energy supply shock, heightening inflation risks and raising concerns over a potential global economic slowdown.

Brent crude surged to 96 USD/Bbl, rising over 6% on the day, as renewed geopolitical tensions in the Middle East rattled markets. The sharp move follows Iran’s reversal on plans to reopen the Strait of Hormuz after the US declined to lift its blockade on Iranian ports, dampening recent optimism around de-escalation. Although progress toward a potential agreement had been building late last week, uncertainty has quickly returned, even as President Trump signaled that US negotiators will head to Pakistan on Monday for further talks.

Brent crude futures plunged 10% to below $90 per barrel on Friday, hitting near five-week lows after Iran’s Foreign Minister Abbas Araghchi announced that the Strait of Hormuz is now fully open to commercial traffic during the ceasefire period. The move boosted optimism that one of the most severe global energy supply disruptions in recent history may be easing. The statement followed earlier remarks from President Donald Trump, who said Iranian concessions could pave the way for a broader peace deal. Prices extended losses after reports that the US may release $20 billion in frozen Iranian funds in exchange for enriched uranium stockpiles, with further talks expected this weekend. The market is increasingly pricing in an end to the conflict’s impact on supply, after nearly 50 days of disruption that had choked off a significant share of global oil flows.