Brent crude climbed to roughly $91 a barrel on Monday as renewed U.S.-Iran hostilities paralyzed shipping through the Strait of Hormuz. President Donald Trump demanded Iranian surrender and threatened to bomb Oman, while trade sources reported an alleged tanker seizure that further imperiled international energy markets and a fragile ceasefire.
Strait of Hormuz Shipping Halts Amid Rising Standoff
Global energy markets reeled on Monday after a weekend of escalating military friction effectively halted commercial shipping through the Strait of Hormuz. Satellite analysis and ship-tracking data showed that transit through the crucial Persian Gulf waterway slowed to a near standstill, with only a handful of vessels navigating the corridor.
The disruption followed a dramatic weekend pivot by Tehran, which reversed its earlier pledge to keep the strait open during a two-week ceasefire. Ship-tracking data from Kpler revealed that just five commodity vessels transited the waterway on Saturday, with none registered for Sunday, compared with 31 during the prior weekend.
The standoff intensified after the state-linked Fars News Agency reported on X that an oil tanker had been detained by Iran over transit fee requirements. President Trump subsequently announced that the U.S. had seized an Iranian cargo ship attempting to bypass the naval blockade.
Crude Prices Surge and Global Stock Markets Drop
The renewed hostility wiped out recent market gains, pushing Brent crude futures up $2.35 to settle at $90.87 a barrel, while U.S. West Texas Intermediate rose $2.10 to $84.50 a barrel. European equity indices tumbled in response, with the UK blue-chip FTSE 100 sliding 0.6% and the Stoxx Europe 600 falling 0.8%.
Airlines faced heavy selling pressure as investors weighed the prospect of jet fuel shortages and rising operating costs. International Airlines Group dropped 2%, Ryanair fell 3%, and Wizz Air dropped 5%. Conversely, energy majors BP and Shell posted gains of more than 2% on the FTSE 100.
“Deep reserves of patience are needed, but with some industries such as airlines staring at jet fuel shortages, these are tense times.”
U.S. strategic reserves faced parallel pressures as Department of Energy data showed crude stocks in the Strategic Petroleum Reserve fell by 5.3 million barrels last week to 293.4 million barrels, marking the lowest level since December 1982.
Tensions Escalate as Interim Peace Deal Stalls
Diplomatic efforts to secure a durable peace appeared increasingly fragile ahead of a Wednesday deadline, when the current two-week ceasefire is set to expire. President Trump adopted a hardline stance during a telephone interview on Fox News.
Tehran responded with warnings of its own. A senior Iranian official told Reuters that Iran would escalate tensions in the Strait of Hormuz and launch new attacks if the United States fails to fully implement an interim peace deal within weeks. Meanwhile, Foreign Ministry spokesperson Esmaeil Baghaei noted that ongoing talks with Oman regarding management of the strait remain complex and protracted due to multiple actors attempting to undermine the process.
Energy Secretary Chris Wright expressed confidence in the administration’s long-term economic strategy during a broadcast appearance, noting that the president is playing the long game while sanctions and oil embargoes squeeze Tehran’s export capacity.
