In a move that sent shockwaves through energy markets, Iran has once again shuttered the Strait of Hormuz, propelling Brent crude above $95 per barrel on Monday. The benchmark oil surged 5.55% to $95.40, with WTI following suit at a 6.11% gain to $87.63 by mid-morning trading.
Tehran’s decision revives a high-stakes standoff, warning ships against crossing without permission and tying the blockade to U.S. port embargoes. Iran’s top leadership, including Supreme Leader Khamenei, signaled military readiness to repel foes, casting doubt on a nascent two-day ceasefire.
Washington hit back hard, capturing an Iranian freighter that tested its naval cordon. President Trump rebuked the tactic as ineffective arm-twisting, vowing no concessions. Retaliatory threats from Iran have escalated risks, potentially unraveling fragile peace efforts.
India’s MCX crude futures for May 2026 jumped 6.64% to 8,175 rupees, underscoring the global ripple effects. Local stocks dipped at open, with Sensex and Nifty under pressure from oil shock concerns.
Elsewhere, optimism prevailed in Asia: Nikkei, Hang Seng, and Kospi rose nearly 1%. Wall Street ended Friday on a high note, S&P 500 advancing 1.2% and Nasdaq 1.52%.
This renewed closure of the Hormuz gateway threatens to choke off a fifth of seaborne oil trade, inflating costs worldwide. With no immediate de-escalation in sight, markets brace for prolonged uncertainty, from refinery margins to consumer fuel bills.
