ISLAMABAD: (Web Desk) – Oil prices rebounded sharply on Monday after tensions flared again in the Middle East, triggered by a US naval operation against an Iranian vessel. The incident prompted Tehran to issue a strong warning of retaliation, further escalating uncertainty in global energy markets.
Iran once again shut down the strategically vital Strait of Hormuz over the weekend, shortly after briefly reopening it. Authorities in Tehran cited the ongoing US naval blockade on Iranian ports as the main reason behind the renewed closure. The waterway is a critical global energy route, responsible for transporting nearly one-fifth of the world’s oil and liquefied natural gas.
Despite the rising tensions, global stock markets showed resilience, supported by lingering optimism that diplomatic efforts could still yield a resolution to the weeks-long crisis. However, Iran signaled reluctance to participate in upcoming negotiations scheduled in Islamabad, dampening hopes for immediate progress.
Last week, oil markets had briefly stabilized after Iran allowed limited passage through the strait following a ceasefire between Israel and Hezbollah in Lebanon. This led to a sharp drop in crude prices, with US benchmark West Texas Intermediate and Brent crude both recording significant losses.
That trend reversed on Monday as crude prices surged again. The shift came after reports that a US destroyer intercepted and seized an Iranian cargo ship attempting to bypass the blockade. Iranian officials condemned the move, calling it an act of aggression and vowing a response.
Oil Prices Fall After Iran Reopens Key Strait
Diplomatic efforts between Washington and Tehran remain fragile. So far, only one round of talks has been held in Islamabad, lasting 21 hours but ending without a breakthrough. While the US has expressed confidence in reaching a deal, Iran insists that lifting the blockade is a key condition for any meaningful negotiations.
Meanwhile, regional tensions remain high. Iran’s Revolutionary Guards have warned that any vessel crossing the Strait of Hormuz without authorization could be treated as hostile. At the same time, incidents in Syria and Lebanon highlight the broader instability in the region, with fears that the conflict could expand further.
With the current ceasefire nearing its expiration, uncertainty continues to loom over both diplomatic efforts and global energy markets.
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