Brent crude futures jumped nearly 7% to trade above $96 per barrel on Monday, erasing losses from the previous session as geopolitical tensions in the Middle East reignited. The surge came after President Donald Trump said the US Navy had fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman after it allegedly ignored orders to stop while exiting the Strait of Hormuz. In response, Tehran targeted ships and reasserted control over the waterway, contending that the US blockade of Iran-linked vessels breached the existing ceasefire agreement.
Hopes for a durable peace had been gaining traction late last week, but uncertainty has returned, even as Trump confirmed that US negotiators would travel to Pakistan on Monday for another round of talks. The protracted conflict has unleashed a historic shock to global energy supplies, amplifying inflationary pressures and stoking fears of a potential worldwide economic slowdown.
