Oil Outlook Tightens, Prices Surge as U.S. Seizes Iran Vessel
Reflecting lingering supply risk, oil prices rose on Monday after the United States seized an Iranian vessel and Tehran reclosed the Strait of Hormuz, heightening concerns over disruptions to global supply.
International benchmark Brent crude traded at $95.32 per barrel, up around 5.5% from the previous close of $90.38. US benchmark West Texas Intermediate increased about 6% to $87.56 per barrel, compared with $82.59 in the previous session.
US President Donald Trump said Sunday that American naval forces intercepted and disabled an Iranian-flagged cargo ship that attempted to breach the US naval blockade in the Gulf of Oman, with US Marines now holding the vessel in custody.
Iran warned that it would retaliate “soon” following the move, which it called a violation of a Pakistan-brokered two-week ceasefire that has largely held since it was announced on April 7.
The semi-official news agency Tasnim reported that after US forces boarded the container ship TOUSKA in the Gulf of Oman, Iranian drones were launched against American vessels, without specifying whether the targets were military or commercial.
The standoff has cast doubt on further peace talks before the April 21 ceasefire deadline, while disruptions in the strait—key to about 20% of global oil supply—are expected to keep prices elevated.
Iran’s Parliament Speaker Mohammad Bagher Qalibaf said early Monday that Tehran is continuing negotiations with the US but remains ready to take “necessary measures” amid fears of renewed escalation.
“We do not trust the enemy. At any moment, it may escalate the war,” Qalibaf said in televised remarks, according to Iran’s semi-official Mehr News Agency. “We are negotiating, but we are prepared for the necessary measures,” he added.
While expectations of negotiations are putting downward pressure on prices, rising geopolitical tensions and mutual threats are increasing the risk premium and providing support. Naira Sees 1.13% Weekly Gain on FX Liquidity, Interventions
