Oil prices on the global market have begun to rise sharply, primarily due to attacks on commercial vessels in the Strait of Hormuz area and uncertainty in the prospects for negotiations between the United States and Iran. Brent crude futures, the main global benchmark, rose more than 7% on Monday in the Asian market, reflecting the darkening outlook for peace between Washington and Tehran.
The sharp price increase followed US President Donald Trump's statement that American forces seized an Iranian-flagged cargo vessel attempting to evade the US blockade of Iranian ports. This announcement came after reports by the United Kingdom Maritime Trade Operations (UKMTO) Centre of attacks on two vessels transiting the strait over the weekend. According to UKMTO, Iranian gunboats fired on a tanker, while an "unknown projectile" struck a container ship.
The Iranian authorities, having declared the strait "completely open" on Friday, reversed their position less than 24 hours later, citing the ongoing American blockade. Iran's effective closure of the strait, which typically carries about one-fifth of global oil and natural gas supplies, has driven a surge in fuel prices worldwide, forcing governments to tap emergency reserves and implement energy-saving measures.
A two-week ceasefire between the United States and Iran is set to expire on Wednesday if the sides cannot agree on an extension. An initial round of talks held in Islamabad earlier this month broke down without any agreement. Later, the Iranian state news agency IRNA reported that Tehran would not participate in the talks, citing the American blockade and Washington's "excessive demands" and "unrealistic expectations."
According to UKMTO, nineteen vessels crossed the strait on Saturday, up from ten the previous day, but far below the historical average of 138 daily transits. Asia's main stock markets opened higher on Monday despite the dimming prospects for de-escalation. Japan's Nikkei 225 index rose more than 1% in morning trading, while South Korea's KOSPI gained about 1.3%.
Source: www.aljazeera.com