Global oil prices continued to climb as uncertainty persists over the effective closure of the Strait of Hormuz, one of the world's most critical shipping routes for energy supplies. Markets remain tense as the ongoing conflict in the region disrupts the movement of oil and raises concerns about global supply.
Oil prices climb amid supply concerns
Brent crude, the key global oil benchmark, surged as much as 3 per cent on Sunday, briefly crossing the $106-per-barrel mark. Prices later eased slightly but remained elevated early Monday, reported Aljazeera.
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As of 4.30 GMT, Brent crude was trading at $104.63 per barrel, reflecting a rise of nearly 1.5 per cent. The increase comes as traders assess the impact of the disruption in the Strait of Hormuz, through which roughly one-fifth of the world's oil supply normally passes.
Energy markets have reacted sharply to the situation. Since the war began, global oil prices have climbed more than 40 per cent, pushing fuel costs higher and raising concerns about possible effects on the global economy.
Trump urges allies to help reopen the strait
The latest surge in oil prices followed remarks from US President Donald Trump urging other nations to support Washington's effort to reopen the strategic waterway.
In an interview with The Financial Times on Sunday, Trump warned that NATO would face a "very bad" future if his proposal received "no response, or if it's a negative response".
So far, the appeal has received limited support. Countries mentioned by Trump, including China, Japan, France and the United Kingdom, have not publicly committed to sending naval forces to secure the passage.
Japan and Australia also stated on Monday that they currently have no plans to deploy ships to the region.
Shipping disruption in the Strait of Hormuz
The Strait of Hormuz, bordered by Iran, Oman and the United Arab Emirates, has seen a dramatic drop in vessel movement. Iran has halted shipping traffic in retaliation for US and Israeli strikes on the country.
According to the International Energy Agency, the disruption represents the largest interruption to global energy supplies in history.
Data from the United Kingdom Maritime Trade Operations (UKMTO) centre shows that only about five ships have passed through the strait daily since the conflict began, compared with the historical average of 138 transits per day.
UKMTO also reported that at least 16 commercial vessels have been attacked in the region since the war started on February 28.
US officials say Washington is prepared to deploy naval escorts for commercial ships. However, the Trump administration has indicated that such operations will begin only after Iran's military capacity has been further weakened.
