Oil Prices Soar Again As U.S-Iran War Escalates With Increased Ship Strikes In Hormuz

Oil prices soared again after attacks on commercial ships in the Strait of Hormuz and conflicting signals regarding the prospect of further negotiations between the U.S and Iran.

Brent crude futures, the primary benchmark for global prices, jumped over 7% in Asia on Monday.

The latest surge in oil prices came after US President Donald Trump said that US troops had attacked and seized an Iranian-flagged cargo ship that had tried to evade the US blockade of Iranian ports.

The United Kingdom Maritime Trade Operations (UKMTO) Centre announced over the weekend that 2 ships had been attacked while crossing the Hormuz.

It also revealed that Iranian gunboats targeted an oil tanker, and an unknown projectile struck a container vessel.

Iran had declared that Hormuz had been completely reopened on Friday, but reversed the decision in less than 24 hours, citing the U.S. blockade of its ports, which Trump said would continue in full force.

On Sunday, Trump said that a U.S delegation would hold a second round of ceasefire talks with Iran in Pakistan.

Iran’s state news outlet IRNA later reported that Tehran would not participate in the talks, citing the American naval blockade, “excessive demands,” and “unrealistic expectations”.

The 2-week ceasefire between Washington and Tehran will expire on Wednesday if the sides do not agree to extend the duration or come to an agreement before that.

The first round of talks was held in Islamabad, Pakistan, this month; however, they broke down as both sides could not reach a common ground.

Iran’s closure of Hormuz has driven up fuel prices across the world, forcing governments to bring about energy-saving measures.

According to UKMTO, 19 ships crossed the Hormuz on Saturday, up from the 10 which transited the waterway on Friday.