WTI Crude Oil 7% Higher

WTI crude futures surged nearly 8% to above $90 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.

Crude Oil rose above 89 USD/Bbl, surging nearly 7% from the previous day, as geopolitical tensions flared again in the Middle East. The gains follow Iran’s decision to reverse plans to reopen the Strait of Hormuz after the US refused to lift its blockade on Iranian ports, undermining hopes for a near-term de-escalation. While momentum toward a lasting peace had been building late last week, uncertainty has since returned, even as President Trump said US negotiators will travel to Pakistan on Monday for another round of talks. Over the past month, oil prices are still down 10.41%, but remain 41.01% higher than a year ago, according to CFD data tracking the benchmark market.

WTI crude futures plunged more than 10% to below $84 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.