FX.co ★ Oil Rises Again on Monday on Hormuz Escalations

WTI crude oil futures jumped more than 5% to $88.80 per barrel on Monday, partially rebounding from an 11.5% slump on Friday, as tensions between the United States and Iran intensified over the weekend. President Trump said he is unlikely to extend the current truce with Tehran if no agreement is reached before it expires this week, adding that the Strait of Hormuz would remain blocked until a deal is finalized. His remarks followed a series of escalating threats and the US seizure of an Iranian cargo vessel, further undermining expectations that regional oil exports will resume in the near term. Trump also indicated that a US delegation was traveling to Pakistan, while Iran has yet to confirm whether it will engage in additional talks. The standoff threatens to worsen the global energy crunch, with the strategically vital Strait of Hormuz—one of the world’s most important routes for oil and gas shipments—remaining largely obstructed.