Global oil prices surged sharply on Sunday after the United States seized an Iranian-flagged cargo vessel in the Gulf of Oman and Iran responded by reimposing restrictions on shipping through the Strait of Hormuz, reversing a brief market rally on hopes of de-escalation.
Brent crude, the international benchmark, climbed more than 6 percent to above $96 per barrel, while West Texas Intermediate (WTI) crude gained more than 6 percent to approach $88 per barrel after trading resumed. The move reversed a sharp decline on Friday, when prices had plunged more than 9 percent after Iran signalled it would fully reopen the Strait of Hormuz to commercial traffic.
President Donald Trump announced that American forces seized an Iranian-flagged cargo ship after it attempted to bypass a US naval blockade in the Gulf of Oman, an action that reignited tensions that markets had briefly believed were easing.
Iran responded by once again blocking the passage of most ships through the Strait of Hormuz, a key waterway through which one-fifth of the world’s crude oil supply flows, leaving market participants uncertain about how open the passage truly was and which ships would be permitted to transit.
A fragile two-week ceasefire between the US and Iran is set to expire on Wednesday, April 21, while escalating tensions in the Strait of Hormuz have cast doubt on the fate of new talks aimed at ending the wider conflict. Trump said US negotiators would travel to Pakistan for further discussions, though no confirmed date was set for those talks.
Crude oil prices have fluctuated dramatically since the US and Israel attacked Iran in late February 2026, spiking at times above $119 per barrel before retreating, with markets swinging sharply in response to each development in ceasefire negotiations and strait access.
Industry analysts have repeatedly warned that the longer the strait remains closed, the worse prices could become, and that even if a lasting deal to reopen the waterway emerges, it could take months for oil shipments to return to pre-conflict levels due to backed-up tanker traffic and damaged energy infrastructure.
