I registered Oil prices A strong jump of about 4% during trading on Monday, driven by a sharp escalation in tensions within the Gulf region, following US military movements to control the movement of ships linked to Iran in the Strait of Hormuz region, which brought fears of disruption to energy supplies back to the global forefront, according to international reports.
The gains were directly reflected in the markets, as Brent crude futures rose by about $4.16, equivalent to 4.4%, to settle at $99.36 per barrel, while US West Texas Intermediate crude rose by $2.51, or 2.6%, to reach $99.08 per barrel.
The level of tension escalated after US President Donald Trump announced that the US Navy would impose restrictions on Iranian shipping traffic through the Strait of Hormuz, in a move that observers considered a new escalation after the faltering of long rounds of negotiations with Iran, which were aimed at calming the conflict and reopening the vital shipping lane.
Trump indicated that oil and gasoline prices may remain at high levels until the midterm elections next November, in recognition of the impact of the military decision on American internal markets and on the movement of energy globally.
In the same context, market analysts, including Eric Myerson from SEB Bank, explained that imposing restrictions on navigation in the Strait of Hormuz practically reflects the decline of the previous calm hypothesis, which was based on reopening the vital corridor, which increases the state of uncertainty in energy markets during the coming period.
