Global crude oil prices climbed sharply on Monday, rising by more than four per cent as renewed uncertainty surrounding the Strait of Hormuz and broader geopolitical tensions reignited fears of supply disruption in international energy markets.
Benchmark crude prices recorded significant gains during trading sessions. Brent crude rose by 4.11 per cent to reach 105.45 US dollars per barrel, while West Texas Intermediate (WTI) increased by 4.59 per cent, settling at 99.80 US dollars per barrel.
| Benchmark Oil | Price (USD per barrel) | Daily Change |
|---|---|---|
| Brent Crude | 105.45 | +4.11% |
| WTI Crude | 99.80 | +4.59% |
Market sentiment has been heavily influenced by heightened instability in and around the Strait of Hormuz, a critical maritime corridor through which a substantial share of global seaborne oil shipments passes. Reports of disrupted or uncertain tanker movements have added to concerns over potential supply bottlenecks.
Additional pressure emerged following political developments involving the United States and Iran. Former US President Donald Trump reportedly described Tehran’s response to Washington’s proposal as “unacceptable,” a statement that contributed to renewed anxiety over diplomatic relations and the possibility of further escalation. Traders interpreted the remarks as increasing the likelihood of continued geopolitical friction, which in turn intensified upward pressure on prices.
Industry observers note that oil markets are currently being driven more by geopolitical developments than by traditional supply-demand fundamentals. Statements from Washington and Tehran have repeatedly triggered rapid price fluctuations, underscoring the sensitivity of energy markets to political risk.
Attention is also focused on upcoming diplomatic engagements involving China. Market participants are closely watching a planned visit by Donald Trump to Beijing, where discussions with Chinese President Xi Jinping are expected to include energy security and the situation surrounding Iran and the Strait of Hormuz. Analysts suggest that China could potentially leverage its diplomatic influence to encourage de-escalation and support the restoration of stable maritime traffic through the waterway.
Meanwhile, Saudi Aramco’s chief executive Amin Nasser stated that global oil markets have effectively lost access to approximately one billion barrels over the past two months due to disruptions and constraints. He warned that even if supply flows normalise, markets may require time to regain stability given the scale of recent volatility.
Shipping intelligence reports further indicate that some oil tankers are currently switching off tracking systems while transiting the Strait of Hormuz, reportedly as a precaution against possible security threats. Such practices have added an additional layer of uncertainty to already fragile supply routes.
Analysts broadly agree that until tensions in the region ease and maritime conditions stabilise, global oil markets are likely to remain volatile, with prices continuing to respond sharply to political and security developments.