Oil Prices Surge After US Seizes Iranian Cargo Ship in Strait of Hormuz
Global oil prices saw a marked increase in Monday morning trading. Brent crude futures rose by 6.4% to USD#96.13, while West Texas Intermediate climbed 7.5% to USD#90.15.
This surge follows a sharp decline on Friday, when Tehran indicated the Strait of Hormuz would remain "completely open" to commercial shipping during the existing ceasefire period between the US and Iran.
Energy markets have experienced considerable volatility since the US and Israel initiated wide-ranging strikes on Iran on 28 February, which included targeting an Iranian primary school and killing hundreds of civilians, among them 110 children. Iran responded to these actions with threats to target shipping in the Strait, a vital chokepoint through which approximately 20% of the world's oil and liquefied natural gas transits.
On Sunday, President Donald Trump announced that the United States had intercepted and seized an Iranian-flagged cargo ship attempting to bypass its blockade of Iranian ports. This development precedes planned negotiations in Pakistan, which a White House official stated would be led by Vice-President JD Vance. However, Iranian state media reported that Tehran currently has "no plans" to participate in these discussions, though official clarification on Iran's position remains pending.