Global oil prices climbed sharply after U.S. President Donald Trump announced that American naval forces had intercepted and seized an Iranian-flagged cargo ship, escalating tensions in an already volatile energy market.
The development triggered an immediate reaction, with Brent crude rising by more than six percent to about $96 per barrel.
The surge reversed earlier declines seen after Iran briefly signalled that the Strait of Hormuz would remain open during a ceasefire. However, Tehran later declared the route closed again, warning that vessels approaching the channel could be targeted, further deepening uncertainty around global oil supply.
The Strait of Hormuz, a critical transit point for nearly 20 percent of the world’s oil and gas shipments, has become the focal point of rising geopolitical tensions following clashes involving the United States, Israel, and Iran.
The instability has led to sharp swings in energy markets, with prices fluctuating based on political developments and security concerns.
Analysts say the market is increasingly reacting to rapid shifts in rhetoric and actions from both Washington and Tehran, rather than stable supply indicators. While the U.S. has indicated willingness to pursue talks, Iran’s position on negotiations remains unclear, adding to investor uncertainty and prolonging volatility.
