Washington, DC – Global energy markets were in turmoil on Monday, with oil prices surging more than 5 percent. This surge was fueled by heightened geopolitical concerns about the stability of crude oil supplies.
The sharp rise followed news of the US seizure of an Iranian cargo ship, raising serious fears of a collapse of the fragile ceasefire agreement between the two sides. Meanwhile, shipping through the strategic Strait of Hormuz remains largely halted.
Official figures: Brent crude surpasses $95 mark
Brent crude futures jumped $5.08, or 5.62%, to $95.46 a barrel.
Meanwhile, U.S. West Texas Intermediate crude rose $5.01, or 5.97%, to settle at $88.86 a barrel.
These rapid movements reflect market sensitivity to any threat to vital waterways, particularly given the current state of “neither war nor peace” in the region.
Sharp swings: from optimism to the shock of detention
This sudden price recovery comes after a sharp drop in both crude oil benchmarks last Friday, when they fell by nine percent. That was the largest single-day decline since April 18.
The drop was initially fueled by a glimmer of hope when Tehran announced that the Strait of Hormuz would remain open to all commercial vessels for the remainder of the ceasefire.
However, the seizure of an Iranian tanker by the US Navy dashed this optimism and revived fears of a direct confrontation.
Analysts believe that continued disruptions to traffic through the Strait of Hormuz are exacerbating global inflationary pressures. The strait is a vital artery for approximately one-fifth of the world’s oil production.
With the second round of talks scheduled to take place in Pakistan, the economic community is watching closely for any signs of de-escalation. Continued tensions on the ground could push Brent crude back to test the $100 mark, posing significant challenges to the global economy in the second quarter of 2026.
