Oil prices surged Monday after Iran reclosed the Strait of Hormuz, a key shipping route, citing a U.S. blockade of its ports amid ongoing Middle East tensions.
The closure followed a brief reopening over the weekend and comes days before the end of a two-week ceasefire. A U.S. destroyer recently fired on and seized an Iranian vessel attempting to evade the blockade, prompting Tehran to warn of retaliation.
President Donald Trump told AFP, “We're very close to having a deal… no sticking points at all,” while Iran said its enriched uranium stockpile would not be moved. State media reported Tehran has no plans to join upcoming Iran-U.S. talks in Pakistan without the blockade lifted.
U.S. benchmark West Texas Intermediate rose 5.3% to $88.31 a barrel, and Brent gained 4.8% to $94.67.
Global equities were mostly higher, with Tokyo, Seoul, Taipei, Hong Kong, Shanghai, Wellington, and Manila benefiting from a rebound in technology stocks. Analysts said markets are bracing for both potential diplomatic progress and renewed military escalation.
Chris Weston of Pepperstone said, “Without a comprehensive agreement on Iran’s nuclear programme, the ceasefire remained fragile.”