April 20, (THEWILL) — Global oil prices surged sharply on Monday after renewed hostilities between the United States and Iran triggered the reclosure of the Strait of Hormuz, sending fresh shockwaves through energy markets and raising concerns over global supply disruptions.
Brent crude rose by $6.11, or 6.76 percent, to $96.49 per barrel, while U.S. West Texas Intermediate (WTI) climbed $6.53, or 7.79 percent, to $90.38 per barrel as of 2327 GMT. The rebound followed a steep drop of more than 9 percent on Friday, underscoring extreme volatility tied directly to the fragile and collapsing ceasefire agreement.
The latest price spike was triggered after both Washington and Tehran accused each other of violating the ceasefire by attacking vessels over the weekend, effectively derailing diplomatic progress and forcing the strategic waterway shut again.
The Strait of Hormuz remains one of the most critical arteries for global energy supply, historically accounting for nearly 20 per cent of the world’s oil shipments. Its renewed closure signals a significant threat to already strained supply chains barely two months into the conflict.
U.S. President, Donald Trump, said American forces seized an Iranian cargo vessel attempting to breach a U.S.-enforced blockade, further escalating tensions. In response, Iran announced it would withdraw from planned peace talks, dimming prospects for immediate de-escalation.
The United States has continued its blockade of Iranian ports, while Iran has alternated between lifting and reimposing restrictions on the Strait.
Friday’s market crash followed announcements that the Strait would remain open during the ceasefire, with assurances that Iran would not disrupt passage. However, the breakdown of that agreement has now exposed the fragility of those commitments.
Although more than 20 vessels reportedly passed through the Strait on Saturday (the highest traffic since early March), the renewed disruption highlights the outsized influence of geopolitical risk on global energy markets, where even short-lived escalations can trigger dramatic price swings.
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