Oil prices rose sharply on Monday as concerns grew that a fragile ceasefire between the US and Iran could fall apart, adding pressure to already tight global supplies.
Brent crude climbed $5.08, or 5.62 percent, to $95.46 a barrel by early trading, while US West Texas Intermediate rose $5.01, or 5.97 percent, to $88.86 a barrel.
The rebound came just days after both benchmarks fell around 9 percent on Friday. That drop followed signals from Tehran that the Strait of Hormuz would remain open for commercial shipping during the ceasefire period, alongside remarks from US President Donald Trump suggesting Iran would not shut the route again.
Fresh tensions
The situation shifted quickly over the weekend after the US said it had seized an Iranian cargo ship that tried to bypass its blockade. Iran responded with warnings of retaliation, raising fears that hostilities could resume.
Tehran also indicated it would not join a second round of talks that Washington had hoped to begin before the ceasefire expires later this week.
Adding to the uncertainty, reports of attacks on vessels near the Strait of Hormuz have unsettled shipping companies. Market analysts say confidence among ship operators remains low despite earlier assurances.
June Goh, a senior analyst at Sparta Commodities, said some tankers were targeted shortly after Iran declared the waterway fully open, making operators more cautious about entering the area.
She added that supply conditions are worsening, with an estimated 10 to 11 million barrels per day still offline.
Shipping risks keep markets on edge
The Strait of Hormuz remains a key concern for traders. Before the conflict began nearly two months ago, the route handled about one fifth of the world’s oil supply. Any disruption there has an immediate impact on global prices.
Although data from Kpler showed more than 20 vessels crossed the strait on Saturday, the highest since early March, analysts believe the recovery in traffic may not last.
Saul Kavonic, head of research at MST Marquee, said the market is reacting more to political signals and public statements than actual improvements on the ground.
He warned that the earlier announcement about reopening the strait may have come too soon, and ship owners are likely to remain cautious until they see clear and lasting security guarantees.
With tensions still high and supply routes uncertain, oil markets are expected to stay volatile in the days ahead.
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