Global oil prices climbed sharply in early Monday trading after US President Donald Trump announced that American forces had intercepted and seized an Iran-flagged cargo ship.

The development follows Iran’s decision to once again close the Strait of Hormuz to commercial traffic, warning that any vessel attempting to pass through the vital waterway could be targeted. The strait is a critical route for global energy supplies, carrying around 20 percent of the world’s oil and liquefied natural gas.

Brent crude rose by nearly 4.7 percent to $94.66 per barrel, while US benchmark West Texas Intermediate jumped 5.6 percent to $88.55, reflecting growing uncertainty in energy markets.

The situation comes amid ongoing tensions between the United States, Israel, and Iran. Since late February, markets have experienced sharp volatility following military actions and retaliatory threats affecting key shipping routes.

Despite reports that US officials were preparing for talks in Pakistan, Iran has indicated it currently has no plans to participate. Analysts suggest that the situation remains highly fluid, with market movements driven as much by political signals as by actual supply disruptions.

The closure of the Strait of Hormuz has already triggered a global energy crunch. Many Asian countries, heavily dependent on energy imports through the route, are facing shortages and rising costs. Governments across the region have introduced emergency measures, including reduced working hours, remote work policies, and energy conservation efforts.

Even major economies like China are adjusting fuel pricing strategies to manage the impact, while airlines worldwide are struggling with rising jet fuel costs. The International Energy Agency has warned that prolonged disruption could lead to severe consequences, including potential flight cancellations in Europe.

As tensions continue, global markets remain on edge, closely watching diplomatic developments and the possibility of further escalation in the region.