Iran closes Hormuz Strait again: Crude oil market boils, Brent crude becomes more expensive by more than $1

Hormuz Blockade By Iran Spiking Global Oil Prices: A huge jump has been recorded in the prices of crude oil in the global market on Monday after Iran again closed the Strait of Hormuz. This major and serious tension has come to light during the first meeting between US and Iranian officials under the interim peace agreement. This tension has also dealt a major blow to the hopes of peace in Lebanon, due to which the eyes of the whole world are now directly focused on this important matter.

Brent crude futures rose 54 cents, or 0.67%, to $81.11 a barrel, after hitting an early high of $82.30. On the other hand, American West Texas Intermediate crude futures have reached $ 78.62 per barrel with a huge gain of $ 2.02 or 2.64%. Apart from this, the more active August contract has also increased by $ 1.43 to $ 77.28 per barrel, which clearly shows the huge pressure on oil prices in the global market.

Trump’s threat and peace talks

US Vice President JD Vance has held an important meeting with Iranian officials for the first time under the interim peace agreement. Meanwhile, US President Donald Trump has given a very serious and strict threat to launch major attacks on Iran again. At the same time, Tehran has also clearly said that America has completely failed to fulfill its big commitment to stop the fighting in Lebanon.

Israeli attacks in Lebanon

According to Lebanon’s state news agency NNA, 20 people were killed in Israeli attacks just a day after the ceasefire came into effect. The crucial ceasefire was implemented with great difficulty to end months of violence with Hezbollah. According to IG Markets analyst Tony Sycamore, this continuously deteriorating situation in Lebanon poses a huge threat to the ceasefire and the reopening of the Strait of Hormuz.

Hormuz Strait closed again

The number of ships transiting the Strait of Hormuz fell sharply on Sunday, according to shipping data. Iran has made a big announcement of completely closing this important and busy waterway again, citing violation of the peace agreement. Saul Kavonik, head of energy research at MST Marki, said that the market’s expectation of an early opening of the Strait of Hormuz is too early.

Huge fluctuations in oil supply

Oil prices fell by more than 8% last week on strong expectations that US sanctions would be lifted. Hamid Bovard, head of the National Iranian Oil Company, has said that more than 25 million barrels of Iranian oil has passed through here since Monday. Meanwhile, to meet the increasing market demand, UAE, Kuwait and Iraq have also offered more oil to customers.

Also read: Talks broke down in the first round! America and Iran clash over Lebanon issue, walked out after 80 minutes of meeting

Iraq’s new production plan

Iraq has announced a new plan to overcome the increasing demand and shortage of supply of crude oil in the market. Iraq’s Deputy Oil Minister said in his statement on Sunday that the country will soon increase its oil production. Iraq is making full and strong plans to gradually increase its crude oil production to 4.2 million to 4.3 million barrels per day.