Brent Rises Again on Monday on Hormuz Escalations

Brent crude oil futures surged more than 5% to $95 per barrel on Monday, after a 9.1% plunge on Friday, as tensions between the US and Iran intensified over the weekend. US President Trump said he is unlikely to extend the current truce with Tehran if an agreement isn’t reached before it ends this week, adding that the Strait of Hormuz would remain blocked until a deal is finalized. The remarks followed escalating threats and the US seizure of an Iranian cargo vessel, dimming hopes that oil exports from the region could resume in the near term. Trump also noted that a US delegation was en route to Pakistan, while Iran has yet to confirm whether it will participate in further talks. The standoff risks exacerbating the global energy crunch, with the critical Strait of Hormuz, a key artery for global oil and gas flows, remaining largely obstructed.

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.