Strait of Hormuz Closure Sparks Oil Price Surge

Global oil prices rose on Monday during Asian trading after U.S. President Donald Trump announced the seizure of an Iran-flagged cargo ship. The move came after Iran said on Saturday that it would again close the Strait of Hormuz to commercial vessels and warned it would target ships that approached.

The Strait of Hormuz is described as a major energy chokepoint, with about 20% of the world’s oil and liquefied natural gas (LNG) moving through it. Against that backdrop, Brent crude futures climbed 4.74% to $94.66 per barrel, while West Texas Intermediate (WTI) futures gained 5.6% to $88.55.

The latest price jump reflects continued turbulence in energy markets since the U.S. and Israel began attacks on Iran on February 28, which was followed by Iranian threats aimed at shipping in the strait. The Strait of Hormuz remained closed on Sunday, and Iran said it would not reopen the route until the U.S. naval blockade was lifted.

Officials described the confrontation as contributing to a global energy crisis, marked by sharp price increases and fuel shortages in multiple regions. The disruption has been especially significant for Asia, which is described as heavily dependent on flows through the Strait of Hormuz for about 90% of its energy needs.

In response to tighter supplies, some Asian governments have introduced conservation steps. Measures cited include encouraging remote work, shortening workweeks, and closing universities as part of efforts to reduce energy consumption and preserve available fuel.