Global oil prices experienced a sharp increase on Monday following a significant escalation in the US-Iran conflict over the weekend. The renewed hostilities have cast a shadow over energy shipments, particularly through the vital Strait of Hormuz, a key choke point for international maritime trade.
Conflict Intensifies Across the Gulf
The conflict saw Iran expand its attacks to include Qatar and the United Arab Emirates, reporting that it had once again closed the Strait of Hormuz. This claim directly contradicted a statement made by US President Donald Trump on Sunday, who asserted that the strait remained open to commercial traffic.
Amid heavy missile and drone strikes exchanged between the United States and Iran, US Central Command announced it launched additional strikes against Iran on Sunday evening. These actions were intended to degrade Iran's capability to target civilian mariners and commercial vessels in the Strait of Hormuz. A US spokesperson confirmed that American aircraft successfully intercepted an Iranian cruise missile and a one-way attack drone.
President Trump commented on the weekend's events, stating, "We're beating them up." Iranian state media, however, reported missile attacks and explosions near the port cities of Sirik and Bandar Abbas, as well as on Qeshm Island, condemning the "aggressive" US actions.
Oil Markets React to Hormuz Disruption
The intensified attacks immediately impacted energy markets. Brent crude futures rose by $2.34, or 3.08%, reaching $78.35 per barrel by 2311 GMT. Concurrently, US West Texas Intermediate (WTI) crude gained $2.21, or 3.09%, to trade at $73.62 a barrel.
Further exacerbating concerns, shiptracking data from Kpler revealed a dramatic reduction in maritime traffic through the Strait of Hormuz. Only six vessels passed through the strait on Sunday, marking the lowest transit volume in five weeks. This significant drop highlights the immediate impact of the US-Iran conflict on global shipping and energy supply chains.
Diplomatic Efforts Falter
The renewed violence has placed the future of a recent US-Iran interim agreement in jeopardy. Signed just last month, the agreement aimed to reopen the strait and conclude the war after 60 more days of negotiations. President Trump has since indicated he considers the ceasefire over, though he remains open to future talks.
Iran's top negotiator, Mohammad Baqer Qalibaf, posted on social media that "the era of one-sided deals is over" and issued a warning about the consequences of broken promises. Iran's foreign ministry also stated that talks with Oman regarding the strait's management failed due to "overt and covert" US pressure on Oman, which had been mediating ceasefire discussions with Qatar.