US-Iran Tensions Contribute to Crude Oil Price Surge, Brent Oil Tops $95 a Barrel

Tensions in the Middle East Send Oil Prices Soaring

Crude oil prices have seen a significant jump due to rising US-Iran tensions in the Middle East, which have restricted shipping in and out of the Gulf. Iran has re-imposed its de facto closure of the Strait of Hormuz, a critical waterway for global oil supplies. As a result, the Brent crude oil price rallied 6.10% to $95.89 a barrel, while the US West Texas Intermediate (WTI) crude futures surged 7.49% to $90.13 a barrel.

The US-Iran war ceasefire is due to run until Tuesday, but its prospects are uncertain following the US seizure of an Iranian cargo ship and Tehran's vow to retaliate. Kpler data showed that despite Iran's closure, more than 20 vessels carrying oil products, metals, gas, and fertiliser passed through the Strait of Hormuz on Saturday, the busiest day for the chokepoint since March 1, according to Reuters.

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Iran has rejected new peace talks with the US, as reported by its state news agency on Sunday. This decision comes hours after US President Donald Trump stated that he was sending envoys for talks in Pakistan and would launch new strikes on Iran unless it accepts his terms. The developments have dampened earlier optimism and heightened uncertainty surrounding negotiations, keeping markets on edge.

Ponmudi R, CEO of Enrich Money, noted that oil prices have surged sharply, with an approximate 7% spike, amid the approaching ceasefire deadline, intensifying fears of supply disruptions. This escalation has reversed the recent decline in crude prices, with Brent crude now trading in the $95–98 per barrel range.