Oil Prices Surges Again as Geopolitical Tensions Escalate Over Hormuz Strait

Global oil markets surged sharply in early Asian trading on Monday, with Brent crude futures climbing above $102 per barrel and U.S. West Texas Intermediate (WTI) reaching over $105, as renewed geopolitical tensions surrounding Iran and the Strait of Hormuz rattled energy markets.

Brent crude for June delivery jumped to approximately $102.60 a barrel, while WTI futures for May rose to around $105.25, marking some of the strongest intraday gains in recent weeks. The rally extended an already volatile period for oil markets, which have been highly sensitive to developments in the Middle East.

Latest Oil Prices: 

WTI Crude • 105.0 +8.40 +8.70%

Brent Crude • 102.8 +7.63 +8.01%

Murban Crude • 98.16 -1.46 -1.47%

Heating Oil • 4.111 +0.349 +9.29%

WTI Midland • 100.9 -1.67 -1.63%

Opec Basket • 107.3 +0.29 +0.27%

Indian Basket • 3 days 120.3 +4.76 +4.12%

Natural Gas • 2.704 +0.056 +2.11%

Gasoline • 3.195 +0.158 +5.19%

The spike followed heightened escalation after U.S. President Donald Trump signaled support for a maritime blockade of the Strait of Hormuz following stalled negotiations with Iran. The Strait, a critical chokepoint for global energy flows, handles roughly one-fifth of the world’s seaborne oil trade, making any disruption a major trigger for price volatility.

According to statements attributed to U.S. Central Command, the military would begin enforcing restrictions on maritime traffic to and from Iranian ports starting Monday morning (Eastern Time), while allowing passage for vessels unrelated to Iranian shipping routes. The move was described as part of a broader effort to pressure Tehran amid ongoing tensions.

In a separate statement posted on his social media platform, Trump said the U.S. Navy would immediately move to assert control over the Strait of Hormuz, warning that vessels allegedly paying transit fees to Iran could be intercepted. He also claimed Iranian forces had laid mines in the waterway, further escalating fears of a broader maritime confrontation.

“We will intercept every ship in international waters that pays illegal fees,” Trump wrote, adding that any attack on U.S. forces or commercial vessels would be met with force.

Markets reacted swiftly to the developments, reversing earlier declines. Oil prices had fallen earlier in the week following reports of a temporary ceasefire agreement between the United States and Iran, mediated by Pakistan. However, that truce appeared increasingly fragile as tensions over maritime access persisted.

At the end of the previous trading week, Brent and WTI both briefly slipped below the $100 mark amid optimism over de-escalation. That sentiment quickly reversed as shipping disruptions in the Strait of Hormuz continued and diplomatic progress stalled.

Analysts note that despite the ceasefire announcement, actual conditions in the Strait remained unstable, with commercial navigation significantly constrained. The uncertainty has kept risk premiums elevated in global energy markets.

Meanwhile, Iranian energy officials indicated that domestic refining capacity is gradually recovering following recent infrastructure damage. A senior oil ministry official said the country expects to restore 70–80% of refining and distribution capacity within one to two months, with some facilities, including parts of the Lavan refinery, expected to resume operations within days.

As the geopolitical standoff deepens, traders warn that further escalation around the Strait of Hormuz could push oil prices higher still, potentially amplifying inflationary pressures across global markets.