Oil Prices Jump After US Seizes Iran Ship Near Strait

Global oil prices have jumped sharply. The reason is a new confrontation. US President Donald Trump said its navy had intercepted and seized an Iran-flagged cargo ship.

Oil Prices Reverse Course

Brent crude rose by more than 4% to $94.20 a barrel. This reversed a fall from Friday. On Friday, Iran had said the Strait of Hormuz would be “completely open” for the remainder of the ceasefire.

Strait Closes Again

However, on Saturday, Iran changed course. It said it was closing the strait again. Any ship that approached it would be targeted. The waterway is critically important. About 20% of the world’s oil and liquefied natural gas usually passes through it.Energy markets have seen wild swings since 28 February. That is when the US and Israel attacked Iran. Tehran responded with threats to target shipping in the strait.

Talks in Pakistan? No Plans, Says Iran

Trump said his representatives will be in Pakistan on Monday for negotiations. Vice-President JD Vance will lead the US delegation. However, Iran’s state media said Tehran has “no plans for now to participate”. Iranian officials have not clarified their position yet.Analyst Saul Kavonic from MST Marquee spoke to the BBC. “Oil markets continue to gyrate in response to oscillating social media posts by the US and Iran,” he said. “Not the realities on the ground.”