WTI crude oil futures surged more than 4% to $88 per barrel on Monday, partially recovering from an 11.5% plunge on Friday, as tensions between the United States and Iran intensified following attacks on commercial vessels in the Strait of Hormuz.
Over the weekend, the US Navy seized an Iranian vessel after Tehran fired on ships and moved to reassert control over the strategic waterway, effectively closing it again while accusing Washington of breaching a ceasefire that is set to expire this week. In a further escalation, US forces targeted another Iran-linked vessel in the Gulf of Oman, while Iran struck additional ships in the strait, bringing maritime traffic in the area close to a standstill.
President Donald Trump warned that tensions could escalate further if no agreement is reached, although the prospects for talks remain uncertain amid signals from Tehran that it may decline to participate in negotiations planned in Pakistan. The confrontation threatens to exacerbate the global energy crisis, with one of the world’s most critical routes for oil and gas shipments now severely disrupted.