Iran continued its near-total blockade of the Strait of Hormuz despite US President Donald trump saying Tehran must allow oil to go through the waterway.
Oil prices declined from an early trade of over $119 a barrel, a peak since 2022, caused by Saudi Arabia and other OPEC members cutting supplies due to disruptions from the expanding US-Israeli war with Iran.
Oil prices surged nearly 30% to more than $119 a barrel on Monday, hitting levels not seen since mid-2022, as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war with Iran.
Oil prices continued their upward climb on Monday, as markets focused on escalating geopolitical risks in the Middle East despite renewed assertions by US President Donald Trump that talks with Iran remain under way and could still lead to a diplomatic breakthrough.
Global oil prices surged on Monday as escalating hostilities in the Middle East rattled energy markets, raising fears of a prolonged supply disruption from one of the world’s most critical oil-producing regions.
US President Donald Trump said on Friday American forces had destroyed military targets on Iran’s Kharg Island, Tehran’s main oil export terminal, while warning he could also target the island’s petroleum infrastructure if Iran or its allies continue threatening shipping through the Strait of Hormuz, sending fresh tremors through oil markets.
The United States has temporarily eased sanctions on Russian oil by allowing countries to purchase cargoes already stranded at sea, as Washington seeks to contain a fresh surge in crude prices triggered by Middle East supply disruptions and fears over restricted energy flows through the Gulf.
Oil prices jumped on Thursday as Iran stepped up attacks on oil and transport facilities across the Middle East, raising fears of prolonged disruptions at the Strait of Hormuz.
OPEC Plus agreed to raise April oil output by 206,000 barrels per day, citing stable market conditions and falling inventories, while maintaining flexibility to gradually reinstate its 1.65 million bpd voluntary production cuts if needed.
Iran's Revolutionary Guards warned on Saturday that no vessel would be allowed to pass through the Strait of Hormuz, a chokepoint through which nearly a fifth of the world’s oil supply passes.
