FX.co ★ Oil Surges after US-Iran Talks Collapse

WTI crude oil futures jumped more than 7% to $103.60 per barrel on Monday, erasing last week’s losses after President Donald Trump announced a US blockade of the Strait of Hormuz, following the collapse of weekend negotiations with Iran. The restrictions will apply only to vessels entering or leaving Iranian ports, starting at 10 a.m. Eastern Time. Washington accused Tehran of refusing to curb its nuclear program, while Iran reportedly sought to assert control over the strait. The crucial shipping channel has been effectively closed since the conflict began, fueling sharp increases in oil and gas prices and stoking concerns over inflationary pressures and a slowdown in global growth. At the same time, Saudi Arabia said it has fully restored pumping capacity through its East–West pipeline to the Red Sea, as well as production at the Manifa field. OPEC data showed a steep drop in output in March, led by significant declines among key producers including Saudi Arabia, Iraq, the UAE, and Kuwait.