Oil prices moved sharply higher on Sunday after Iran again restricted passage through the Strait of Hormuz, reviving fears over global energy supply just as the current ceasefire approaches its expiration.
Brent crude, the global benchmark, rose around 7 percent to $96.88, rebounding after ending Friday at its lowest level since March 10 on earlier reports that Tehran would allow shipping to resume. U.S. crude also gained 7 percent, climbing to $90.33. The renewed increase reflected fresh uncertainty over one of the world’s most important maritime routes, through which roughly one-fifth of global crude supply normally passes.
Despite earlier expectations that transit might resume, the status of the strait remained unclear. Questions persisted over how open the route actually was and which vessels, if any, would be permitted to move through it. On Saturday, Iran announced that it was closing the waterway once more, accusing the United States of violating trust.
The situation escalated further after Iranian gunboats reportedly fired on tankers attempting to pass through the strait. President Donald Trump described the incident as a breach of the ceasefire and said the U.S. blockade had effectively already shut the route. Iran’s military, in turn, warned that it would retaliate against what it called American piracy.
By Sunday, no tankers had crossed the strait, according to ship-tracking data, underscoring the severity of the disruption. The closure has deepened market anxiety not only over crude supply but also over the broader stability of the region.
Diplomatic efforts are continuing, but time appears limited. Trump said a U.S. delegation is traveling to Pakistan for peace talks with Iran and warned he would not extend the ceasefire beyond Wednesday unless an agreement is reached. Sources said Iranian negotiators are expected in Pakistan on Tuesday, although Tehran has not publicly confirmed participation.
Even so, expectations for a quick breakthrough remain low. Iran’s parliamentary speaker and chief negotiator, Mohammad Bagher Ghalibaf, said the two sides are still far from a final agreement, suggesting that the coming days may prove critical both for diplomacy and for the global energy market.
The impact is already being felt beyond oil futures. In the United States, the national average price of gasoline reached $4.05 per gallon on Sunday. Energy Secretary Chris Wright said prices may not fall below $3 per gallon until next year, though he did not rule out that happening later this year.
Financial markets also reflected the growing unease. Dow futures fell 451 points, or 0.91 percent, while futures tied to the S&P 500 and Nasdaq both dropped by roughly 0.8 percent, as investors weighed the risks of prolonged disruption in the Gulf.
