Oil prices jump as Iran tensions escalate again

Oil prices rose sharply on Monday after tensions in the Middle East intensified, with Iran closing the Strait of Hormuz again just a day after reopening it. The move came amid ongoing disputes with the United States, including a blockade of Iranian ports.

The renewed escalation pushed crude prices higher following a steep drop on Friday, when optimism over a potential deal had briefly eased market concerns. West Texas Intermediate crude oil surged more than seven percent at one point, while Brent crude oil climbed over six percent.

The Strait of Hormuz, a key global shipping route through which around one-fifth of the world’s oil and liquefied natural gas passes, remains central to the crisis. Iran warned that any vessel crossing the strait without its permission could be targeted.

Earlier, markets had rallied after signals of a possible diplomatic breakthrough. Donald Trump said a deal with Tehran was close, though Iran rejected key conditions, particularly regarding its enriched uranium stockpile.

Tensions rose further after a US destroyer intercepted an Iranian vessel attempting to bypass the blockade, prompting Tehran to warn of retaliation. Iran also indicated it may not attend upcoming talks with the United States.

Despite the geopolitical uncertainty, global stock markets showed resilience, supported by lingering hopes for a diplomatic resolution. However, analysts cautioned that without a comprehensive agreement, the ceasefire remains fragile and markets could remain volatile.