Media365
Global oil prices climbed sharply on Monday after Iran announced it had once again closed the Strait of Hormuz, raising fresh concerns over energy supplies and overshadowing the first round of negotiations between Washington and Tehran under a recently signed interim peace agreement.
Brent crude futures for September delivery rose 1.24 per cent to $81.04 a barrel in early Asian trading, while US West Texas Intermediate (WTI) crude futures for August gained 2.53 per cent to $77.77 a barrel. Earlier in the session, Brent had climbed as high as $82.30 per barrel before paring some gains.
The rise came after a weekend marked by mixed signals from both sides. US Vice President JD Vance met Iranian officials on Sunday in the first direct talks since the two countries agreed to extend an April ceasefire for another 60 days to facilitate broader peace negotiations.
However, the diplomatic opening was quickly overshadowed by renewed tensions. US President Donald Trump warned that Washington could resume military action against Iran if negotiations failed, while Tehran announced that it had again shut the Strait of Hormuz, accusing Israel and the United States of violating the terms of the interim peace deal.
The closure immediately rattled shipping markets and energy traders.
According to shipping analytics firm Kpler, only five vessels transited through the Strait of Hormuz on Sunday, down sharply from 26 ships recorded a day earlier. The vessels included three Very Large Crude Carriers (VLCCs), each carrying around 2 million barrels of Saudi crude oil and fuel oil. One of the tankers was reportedly bound for Japan.
The data may not capture all vessel movements, as some ships switch off their transponders while operating in the Gulf region.
The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling roughly a fifth of global oil consumption and a significant share of liquefied natural gas exports. Any disruption to traffic through the narrow waterway can trigger fears of supply shortages and higher energy prices worldwide.
Iran had eased its effective blockade of the strait last week after agreeing with the United States to extend the ceasefire and begin peace talks. However, Tehran’s Islamic Revolutionary Guard Corps announced on Saturday that the waterway would be closed again, citing Israeli military strikes in Lebanon as evidence that the ceasefire agreement had been breached.
Despite Iran’s declaration, the US military maintained that commercial vessels continued to operate in the region.
Shipping data showed that three VLCCs carrying crude from the United Arab Emirates, Kuwait and Iraq exited the strait on Saturday, alongside three tankers transporting refined petroleum products. A further 13 vessels entered the waterway during the day, including two VLCCs.
The uncertainty has prompted Gulf producers to adjust export arrangements. Abu Dhabi National Oil Co (ADNOC) and Kuwait Petroleum Corp have reportedly issued tenders offering buyers the option of loading crude either inside or outside the Strait of Hormuz, providing flexibility in case disruptions intensify.
