Brent Rises on Hormuz Escalations

Brent crude oil futures jumped more than 5% to $96 per barrel on Monday after plunging 9.1% on Friday, as tensions between the US and Iran escalated following attacks on commercial vessels in the Strait of Hormuz. The US Navy seized an Iranian ship over the weekend after Tehran fired on vessels and reinstated controls over the key waterway, closing it again after accusing Washington of violating a ceasefire set to expire this week. The US also fired on another Iranian linked vessel in the Gulf of Oman, while Iran targeted ships in the strait, leaving traffic near a standstill. President Donald Trump warned of further escalation if no deal is reached, though talks remain uncertain as Iran has signaled it may not attend negotiations in Pakistan. The standoff threatens to deepen the global energy crisis, with the vital route for oil and gas flows largely blocked.

Brent crude futures surged more than 5% to above $95 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.