FX.co ★ Iran re‑closes Strait of Hormuz after brief opening

Global oil prices spiked in early Asian trading on Monday after the United States reported the seizure of an Iranian‑flagged cargo vessel and Tehran moved to re‑block the Strait of Hormuz following a brief weekend opening.

Brent futures rose about 7% at one stage, touching $97.50 a barrel.

The move came after US forces opened fire on the vessel, which they said had attempted to breach the established blockade. US officials said the ship was subsequently seized. Iranian state media strongly condemned the action and vowed retaliatory measures.

The latest escalation followed Iran’s announcement over the weekend that it would reopen the strait. That initial declaration prompted oil prices to fall by more than 9% on Friday, only for Tehran to reimpose the blockade less than 24 hours later. Over the weekend, Iranian forces also fired on several commercial vessels attempting to transit the waterway, according to maritime reports.

The incidents mark a sharp deterioration in US‑Iran relations at a sensitive phase of a two‑week truce, which is due to expire formally on April 21. The renewed confrontation casts doubt on the viability of further talks before the truce ends, analysts said.

The military confrontation between the United States, Israel, and Iran has now entered its eighth week, and the weekend incidents make immediate de-escalation unlikely. Persistent disruption of traffic through the Strait of Hormuz, a route that handles roughly 20% of global oil consumption, will continue to underpin oil prices in coming days.

Oil had surged to nearly $120 a barrel at the peak of the conflict but lost much of those gains over the past two weeks amid hopes for a diplomatic settlement. With the first rounds of contact yielding no significant progress, prospects for further meetings between Washington and Tehran remain highly uncertain.