Oil Surges after US-Iran Talks Collapse

WTI crude oil futures surged more than 7% to $103.6 per barrel on Monday, recouping losses from last week after President Donald Trump announced a US blockade of the Strait of Hormuz, following the collapse of weekend negotiations with Iran. The restrictions will apply only to vessels entering or leaving Iranian ports starting at 10 a.m. Eastern Time. The US accused Tehran of refusing to curb its nuclear ambitions, while Iran reportedly sought control of the strait. The key shipping route has effectively remained closed since the conflict began, driving sharp gains in oil and gas prices and raising concerns about inflationary pressures and weaker global growth. Meanwhile, Saudi Arabia said it has restored full pumping capacity through its East-West pipeline to the Red Sea, along with output from the Manifa field. OPEC data showed output plunged sharply in March, driven by steep declines across key producers including Saudi Arabia, Iraq, the UAE and Kuwait.

WTI crude futures climbed as much as 9.3% to above $105 per barrel on Monday, recouping losses from last week after President Donald Trump announced a US blockade of the Strait of Hormuz, following the collapse of weekend negotiations with Iran. The restrictions will apply only to vessels entering or leaving Iranian ports starting at 10 a.m. Eastern Time. Talks held in Pakistan failed to produce an agreement, with the US accusing Tehran of refusing to curb its nuclear ambitions, while Iran reportedly sought control of the strait, war reparations, a broader regional ceasefire (including Lebanon), and access to frozen overseas assets. The key shipping route has effectively remained closed since the conflict began, driving sharp gains in oil and gas prices and raising concerns about inflationary pressures and weaker global growth. Meanwhile, Saudi Arabia said it has restored full pumping capacity through its East-West pipeline to the Red Sea, along with output from the Manifa field.

Oil prices fell 2.35% on Friday, with WTI crude trading around $95.5 per barrel as markets focused on shifting geopolitical developments and ongoing negotiations in the Middle East. The move came amid continued uncertainty around US–Iran talks, with traders weighing the potential for de-escalation against lingering risks to regional stability. Concerns over possible disruptions to shipping flows through the Strait of Hormuz continued to support a geopolitical risk premium in oil markets, even as immediate supply disruption fears remained contained. Despite the daily decline, crude oil remains up 10.28% over the period, reflecting sustained sensitivity to geopolitical headlines and supply-side risk conditions.