Oil prices jumped on Sunday after the U.S. Military seized an Iranian-flagged cargo vessel attempting to evade a naval blockade near the Strait of Hormuz, reigniting fears that a vital global energy chokepoint will remain closed for weeks.
The seizure, announced by President Donald Trump, came after Iran reversed its decision to reopen the strait and fired on commercial vessels Saturday, including a tanker hit by gunboats and a container ship struck by an unknown projectile, according to the UK Maritime Trade Operations Centre. Brent crude futures, the international benchmark, rose more than 7% in Asian trading to $96.27 per barrel, even as U.S. West Texas Intermediate crude gained 6.4% to $87.90 per barrel after the Chicago Mercantile Exchange reopened.
The price surge erased much of Friday’s 9% drop, which had followed Iran’s brief declaration that the strait would be fully reopened to commercial traffic. That reversal, cited by Tehran as a response to the ongoing U.S. Blockade of Iranian ports, has left the waterway — which normally carries about one-fifth of global oil and liquefied natural gas supplies — effectively shut since the start of the U.S.-Israeli conflict with Iran eight weeks ago.
Despite conflicting signals on diplomacy, market anxiety grew after Trump said a U.S. Delegation would travel to Pakistan for a second round of ceasefire talks, only for Iranian state media IRNA to report that Tehran would not participate, citing the blockade and what it called Washington’s “excessive demands” and “unrealistic expectations.” A two-week ceasefire, in place since early April, is set to expire on Wednesday unless extended.
For more on this story, see Trump Threatens Iran With Infrastructure Attacks Over Strait of Hormuz Closure.
Even if negotiations resume and a deal to reopen the strait is reached, analysts warn that restoring normal oil flows could take months. Backed-up tanker traffic, lingering concerns among shipowners about sudden escalations, and war-damaged energy infrastructure in the region are expected to impede a swift return to pre-conflict shipment volumes.
The prolonged disruption has already driven up fuel prices globally, affecting businesses and consumers from Asia to Europe. U.S. Energy Secretary Chris Wright told CNN’s “State of the Union” that while prices may have peaked, it remains uncertain when average gasoline costs will fall below $3 a gallon — possibly not until next year.
Stock markets in Asia showed resilience despite the gloom, with Japan’s Nikkei 225 rising over 1%, South Korea’s KOSPI gaining 1.3%, and Hong Kong’s Hang Seng and Shanghai’s SSE Composite both advancing modestly on Monday morning.
How long has the Strait of Hormuz been effectively closed?
The strait has been virtually closed since the start of the U.S.-Israeli war with Iran on February 28, 2026, marking eight weeks of disrupted flows as of late April.
What is the historical average daily traffic through the Strait of Hormuz?
According to the UK Maritime Trade Operations Centre, the strait typically sees about 138 vessel transits per day under normal conditions.
