Oil prices rose on Monday after renewed tensions in the Middle East, when Iran closed the Strait of Hormuz over the weekend—just a day after reopening it—citing a U.S. blockade of its ports. The closure came amid dwindling hopes for a diplomatic breakthrough in the seven‑week crisis. Earlier optimism had driven crude prices sharply lower and lifted U.S. and European equities on Friday, after Iran indicated it would allow ships to transit the waterway again. That optimism was sparked by comments from President Donald Trump, who told AFP that a deal with Tehran was “very close” and that “no sticking points at all” remained.
Iran quickly pushed back, insisting its stockpile of enriched uranium would not be transferred “anywhere.” U.S. benchmark West Texas Intermediate had plunged more than 11 % and Brent fell 9 % on Friday, but both contracts rebounded strongly on Monday, just days before a two‑week ceasefire is set to expire. The rebound followed the U.S. seizure of an Iranian ship attempting to evade a naval blockade, prompting Tehran to warn of retaliation. The blockade of Iranian ports has been a major obstacle in U.S.–Iran negotiations.
State broadcaster IRIB reported that Tehran has no current plans to attend the next round of talks in Pakistan, while other Iranian media cited unnamed sources saying the overall atmosphere was “not very positive.” Lifting the U.S. blockade remains a precondition for further dialogue. West Texas Intermediate jumped more than 7 % at one point, and Brent rose over 6 %. So far, only a single 21‑hour negotiating session has taken place, in Islamabad on April 11, ending inconclusively.
Despite the diplomatic stalemate, Trump renewed his threat to target Iran’s infrastructure if no agreement is reached, and Iran’s Revolutionary Guards warned that any unauthorized vessel passing through the strait would be considered an enemy target. Global equities nonetheless advanced, tracking record closes on Wall Street’s S&P 500 and Nasdaq. Asian markets—including Tokyo, Seoul, and Taipei—led gains, buoyed by a tech‑sector rally. The dollar, which had weakened sharply on Friday, strengthened against major peers as traders assessed the fragile ceasefire and the prospects for this week’s diplomatic talks. Analysts cautioned that without a comprehensive agreement on Iran’s nuclear programme, the ceasefire remains vulnerable to sudden shifts in sentiment and the risk of military escalation.
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