Oil prices surged sharply after Iran moved again to block most maritime traffic through the Strait of Hormuz, a critical chokepoint that handles roughly one-fifth of global crude flows, escalating geopolitical tensions and rattling financial markets.Brent crude, the global benchmark, jumped around 7 per cent to $96.88 a barrel, rebounding from Friday’s close, which had marked its lowest level since March 10 amid earlier signals that Tehran might reopen the waterway. US West Texas Intermediate (WTI) crude also climbed 7% to $90.33.The Middle East tensions are also feeding into energy markets and consumer concerns. US gasoline prices rose to a national average of $4.05 per gallon on Sunday, with Energy Secretary Chris Wright cautioning that prices may not fall below $3 until next year, though he did not rule out a decline later this year.Financial markets reflected the growing uneasiness. Dow futures fell 0.91%, or 451 points, while futures for the S&P 500 and Nasdaq each dropped about 0.8%, pointing to a weaker start for US equities.This comes as uncertainty persists over the actual status of the strait. While Iran had indicated a reopening, it reversed course on Saturday, announcing a renewed closure and accusing the United States of “breaches of trust.”The situation deteriorated further as Iranian gunboats fired on Indian tankers attempting to transit the strait following the announcement.Tensions escalated militarily on Sunday when US forces fired multiple rounds at an Iranian-flagged vessel attempting to cross the blockade. The ship, identified as the Touska, was later seized by US Central Command.Iran’s military responded with a warning of imminent retaliation, describing the US action as “armed piracy,” according to state media.Shipping activity came to a standstill, with no tankers reported to have crossed the strait on Sunday, according to vessel tracking data.Diplomatic efforts, meanwhile, appear fragile. Trump said a US delegation is being dispatched to Pakistan for talks aimed at de-escalation, warning that Washington may not extend the current ceasefire beyond Wednesday if no agreement is reached. CNN Sources indicated Iranian negotiators are expected to arrive in Pakistan on Tuesday, though Tehran has refused participation for now.
