Oil prices rise after Iran restricts access to Strait of Hormuz and ceasefire nears expiration

Oil Prices Rise as Iran Imposes Restrictions on Strait of Hormuz

Oil prices surged on Sunday following renewed restrictions by Iran on maritime traffic through the Strait of Hormuz, a critical maritime route that serves as a vital artery for 20% of global oil exports. Brent crude, the international benchmark, climbed to $96.88, a 7% increase, after settling on Friday at its lowest level since March 10 due to news that Iran would reopen the strait. US crude also rose by 7%, reaching $90.33.

Uncertainty remained about the extent of the strait’s closure and which vessels would be permitted to transit. On Saturday, Iran declared another closure of the Strait of Hormuz, citing the United States for “breaches of trust.” Iranian gunboats targeted tankers attempting to navigate the strait, a move President Trump labeled a “violation” of the ceasefire, asserting that “our BLOCKADE has already closed (the Strait of Hormuz).”

“our BLOCKADE has already closed (the Strait of Hormuz).”

Later that day, the US military fired “several rounds” at an Iranian-flagged ship attempting to bypass the US naval blockade. According to US Central Command, the Iranian vessel “Touska” was seized. Iran’s military warned it would soon retaliate against this U.S. armed piracy, as reported by state media.

No tankers crossed the strait on Sunday, per tracking data. Trump announced a US delegation is traveling to Pakistan for peace talks with Iran, but the ceasefire’s extension is in doubt. The president has stated that if an agreement isn’t reached by Wednesday, he will not extend the ceasefire.

Iranian negotiators are expected to arrive in Pakistan on Tuesday, as sources shared with CNN, though Tehran has not officially confirmed their attendance. Mohammad Bagher Ghalibaf, Iran’s parliamentary speaker and lead negotiator, indicated that the parties are “far from a final agreement,” as per state television Sunday.

Meanwhile, US gas prices hit a national average of $4.05 per gallon on Sunday. Energy Secretary Chris Wright suggested that prices may not drop below $3 a gallon until “next year,” though he hasn’t ruled out the possibility of the benchmark being achieved “later this year.”

This is a developing story and will be updated.