Oil prices rise after Trump says Iranian ship seized

Global oil prices surged sharply following President Donald Trump’s announcement that the United States intercepted and seized an Iran-flagged cargo ship. Brent crude futures rose by nearly 5% to $94.66 per barrel, while West Texas Intermediate climbed 5.6% to $88.55. The move escalates tensions in the Strait of Hormuz, a critical maritime chokepoint through which about 20% of the world’s oil and liquefied natural gas passes. This development follows Iran’s recent declaration that it would close the Strait again to commercial vessels, threatening to target any ships attempting to navigate the waterway. The Strait of Hormuz has been a flashpoint since the US and Israel launched attacks on Iran on February 28, prompting Tehran to issue threats against shipping in the region. Iran’s Islamic Revolution Guard Corps (IRGC) ended a temporary reopening of the strait, citing violations of a ceasefire agreement by the US naval blockade, which Iran demands be lifted before reopening the passage. The ongoing closure has intensified concerns over global energy supplies and market stability. Analysts note that oil markets continue to react strongly to political statements and social media posts, reflecting the uncertainty surrounding the conflict and its impact on oil flows. In parallel diplomatic developments, the US announced plans for negotiations in Pakistan, with Vice-President JD Vance leading the delegation. However, Iranian state media indicated that Tehran currently has no plans to participate in these talks, leaving the prospects for a diplomatic resolution unclear. The conflict has already caused extreme volatility in energy markets, with Brent crude prices nearly doubling from under $70 per barrel before the conflict to almost $120 at its peak in early March. The disruption has triggered a global energy crisis, particularly affecting Asia, which depends heavily on oil shipments through the Strait of Hormuz for about 90% of its energy needs. Several countries in the region have implemented measures to conserve energy, including reduced working hours and public appeals to limit electricity use. The ongoing instability underscores the strategic importance of the Strait of Hormuz and the broader geopolitical risks to global energy security.