Global oil prices jumped sharply on Monday after Iran signalled it would not attend the scheduled Islamabad talks and the United States seized an Iranian-flagged cargo ship at sea, reigniting tensions in the Strait of Hormuz shipping corridor.
Brent crude futures rose 6.4% to $96.13 a barrel in early Asian trading, while US benchmark West Texas Intermediate climbed 7.5% to $90.15, the BBC reported. The move wiped out a sharp sell-off from Friday, when prices had tumbled after Iranian Foreign Minister Abbas Araghchi declared the Strait of Hormuz “completely open” for the remainder of the ceasefire period.
On Sunday, US President Donald Trump said American forces had intercepted and seized the Iranian-flagged Touska, a cargo ship attempting to bypass the US blockade of Iranian ports. Iranian authorities have not commented on the seizure, which marks the first physical boarding of an Iranian vessel since the Hormuz crisis began.
Iranian state media said on Sunday evening that Tehran had “no plans for now to participate” in Monday’s talks in Islamabad, even as the White House confirmed Vice President JD Vance would lead the US delegation to Pakistan. Iranian officials have not formally clarified the position.
Energy markets have seen sharp swings since the United States and Israel attacked Iran on 28 February. About 20% of the world’s oil and liquefied natural gas passes through the Strait of Hormuz, making any disruption immediately price-sensitive.
The reversal to $96-a-barrel Brent directly raises Sri Lanka’s fuel import bill. Ceylon Petroleum Corporation (CPC) had secured a crude shipment at $71.99 per barrel on 17 April when prices were falling, but future cargoes will now be negotiated against the renewed risk premium. Sri Lanka’s consumer fuel pricing formula tracks international crude benchmarks, meaning sustained prices above $90 would put pressure on pump prices ahead of the next monthly review.
