- Oil prices have jumped more than 40 per cent since the conflict began on February 28.
- Brent crude briefly crossed $106 a barrel as supply fears grow.
- Global powers remain cautious about sending naval support to reopen the strait.
Oil prices are rising again as markets grow increasingly uneasy about the prolonged disruption in the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Brent crude, the global benchmark for oil prices, climbed as much as 3 per cent on Sunday, briefly moving above $106 a barrel (£83). Prices eased slightly in early trading on Monday, standing at about $104.63 (£82) a barrel at 04:30 GMT, still nearly 1.5 per cent higher.
The sharp move comes as traders try to gauge how long the waterway could remain effectively closed. The Strait of Hormuz carries roughly one fifth of the world’s oil supply, making any disruption there a major concern for energy markets.
The International Energy Agency has described the current situation as the largest disruption to global energy supplies in history. Oil prices have already climbed more than 40 per cent since the conflict began on February 28, adding pressure on fuel costs worldwide and raising fresh fears about a slowdown in the global economy.
Ships slow to a trickle
Traffic through the narrow waterway has slowed dramatically. According to the United Kingdom Maritime Trade Operations (UKMTO) centre, no more than five ships have been passing through the strait each day since the conflict began. Historically, around 138 vessels transit the route daily.
At least 16 commercial ships have reportedly been attacked in the wider region during the same period, according to UKMTO data. The disruption followed retaliatory moves by Iran after military strikes by the US and Israel.
The situation has effectively brought shipping through the strait to a standstill, leaving oil markets highly sensitive to any developments in the region.
Calls for naval support meet cautious response
US President Donald Trump has urged other countries to help reopen the route, suggesting a coordinated naval effort to secure shipping lanes. China, Japan, France and the UK were among the nations he publicly called on to contribute.
However, the response so far has been muted. Japan and Australia said on Monday that they had no plans to deploy naval ships to the region.
Trump warned that NATO could face a “very bad” future if allies failed to respond, as quoted in a news report following an interview with the Financial Times.
Officials in Washington have also indicated that US warships could escort commercial vessels through the strait if required. But administration sources reportedly said such deployments would only begin once Iran’s military capabilities had been further weakened.
For now, markets appear to be watching closely. As long as the Strait of Hormuz remains disrupted, traders expect oil prices to stay volatile — with global energy supply hanging on developments in one narrow stretch of water.
