Oil Prices Jump as Hormuz Disruption and Iran Tensions Shake Markets

Global oil prices surged on Monday after US President Donald Trump described Iran’s response to a recent American proposal as “unacceptable,” adding fresh uncertainty to already strained energy markets as shipping through the Strait of Hormuz remained severely disrupted.

Benchmark Brent crude rose by more than 3.9 percent to reach $105.33 per barrel in early trading, while US West Texas Intermediate climbed 4.6 percent to $99.85 a barrel.

The gains reversed some of the heavy losses recorded last week, when both oil contracts fell around 6 percent amid hopes that the 10-week conflict involving the United States, Israel and Iran was nearing an end and that normal shipping activity through the strategically vital Strait of Hormuz could resume.

Analysts said the latest price increase reflected growing fears that oil supplies could remain constrained for a prolonged period.

“The oil market continues to trade like a geopolitical headline machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Attention is now turning to Trump’s scheduled visit to Beijing later this week, where he is expected to hold talks with Chinese President Xi Jinping. US officials said discussions are likely to include the Iran conflict and the ongoing disruption to global oil shipments.

Tony Sycamore, an analyst at IG Group, said markets were hoping China could use its influence with Tehran to help secure a broader ceasefire agreement and ease tensions in the Gulf region.

The Strait of Hormuz remains central to the crisis. The narrow waterway handles a large share of the world’s oil exports, and continuing restrictions have tightened global supplies and unsettled financial markets.

Saudi Aramco chief executive Amin Nasser said on Sunday that the world had lost roughly one billion barrels of oil supply over the past two months. He warned that energy markets would need time to stabilise even if shipping activity fully resumes.

Shipping data from analytics firm Kpler also showed that several oil tankers recently passed through the Strait of Hormuz with tracking systems switched off, a move widely viewed as an attempt to avoid detection and potential attacks.

Analysts at ING Group said geopolitical risks were likely to keep oil prices elevated through 2026, even if the immediate crisis eases. They forecast Brent crude would remain above $90 per barrel next year before gradually easing toward the $80 to $85 range in 2027.

Meanwhile, official data released over the weekend showed that oil imports into China, the world’s largest crude importer, dropped in April to their lowest level in nearly four years, reflecting the growing strain on global energy supply chains.