19.04.202623:56:48UTC+00Oil Surges on Hormuz Escalations

WTI crude futures jumped nearly 8% to trade above $90 per barrel on Monday, erasing losses from the previous session as geopolitical tensions in the Middle East reignited. The surge came after President Donald Trump stated that the US Navy had fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman, following its alleged failure to comply with orders to halt while exiting the Strait of Hormuz.

In response, Tehran targeted ships and moved to reassert control over the vital waterway, contending that the US blockade of Iran-linked vessels violated the existing ceasefire agreement. Hopes for a durable peace, which had been gaining traction late last week, have since been overshadowed by renewed uncertainty, even as Trump indicated that US negotiators would travel to Pakistan on Monday for another round of talks.

The protracted conflict has unleashed a historic energy supply shock, intensifying inflationary pressures and stoking fears of a potential global economic slowdown.