Oil prices are experiencing a significant surge as the ongoing halt of traffic through the crucial Strait of Hormuz continues to impact global markets. Brent crude oil, a primary benchmark for international prices, soared by up to 3 percent on Sunday, surpassing $106 per barrel before settling slightly below that mark at $104.63 as of 04:30 GMT on Monday, reflecting an increase of nearly 1.5 percent.
The rise in prices correlates with US President Donald Trump’s recent call for international support to reopen the Strait, which usually serves as a vital route for about one-fifth of the world’s oil supply. However, Trump’s appeals to countries such as China, Japan, France, and the UK have so far been met with a lack of public commitment to deploying naval forces to ensure the safe passage through this pivotal waterway.
In a discussion with The Financial Times, Trump warned that NATO could face dire consequences if there is no positive response to his proposals. Japanese and Australian officials have indicated they have no current plans to deploy naval vessels to the region. The strait’s effective closure is a direct retaliation from Iran in response to military strikes by the US and Israel, creating what the International Energy Agency has termed the most significant disruption to energy supplies seen in history.
Since the outbreak of war on February 28, global oil prices have surged over 40 percent, exacerbating fuel costs and raising concerns about a potential economic slowdown. The United Kingdom Maritime Trade Operations (UKMTO) reported a drastic decline in the number of vessels passing through the strait, with averages plummeting to no more than five ships daily, compared to a historical norm of approximately 138 transits. Furthermore, at least 16 commercial vessels have reportedly faced attacks in this region since the conflict began.
In response to these escalating tensions, Trump has expressed his willingness to deploy the US Navy to escort commercial traffic through the Strait if necessary. However, officials from the Trump administration have clarified that such a military presence will only occur after the degradation of Iran’s military capability, with expectations that operations in the region may commence soon.
