Oil prices jumped over 7% on Monday after the Strait of Hormuz was closed again amid U.S.-Iran tensions, rebounding from a 9% drop last Friday.
Brent crude futures rose $6.56, or 7.26%, to settle at $96.94 a barrel by 2204 GMT. U.S. West Texas Intermediate (WTI) also surged, gaining $6.07, or 7.24%, to reach $89.92 a barrel.
The Strait of Hormuz, a vital chokepoint for about one‑fifth of the world’s oil supply, was shut after both Washington and Tehran accused each other of violating a ceasefire agreement by attacking commercial vessels.
This closure immediately reignited concerns about global supply security, prompting traders to scramble to cover positions.
Analysts noted that the closure highlights the fragility of maritime security in the Gulf and its outsized impact on energy prices.
“Any prolonged disruption in the Strait of Hormuz could have severe consequences for global oil flows and inflationary pressures worldwide,” one market strategist said.
Market watchers expect volatility to persist as diplomatic efforts remain uncertain.
