Oil Jumps as Hormuz Standoff Drags On
Oil prices surged on Monday, with Brent crude jumping around 4 per cent to near $87 a barrel, as the Strait of Hormuz remained shut into a second week with no deal in sight. Energy shares climbed with it, while a fuel-price analyst warned that American pump prices could reach their highest-ever level for this time of year if the blockade persists. The move reversed the calm with which markets had greeted a weekend strike on a Saudi refinery.
The jump reflected mounting anxiety that the world’s most important oil chokepoint — through which a fifth of global supply normally passes — could stay closed for weeks, with attacks on shipping and Saudi oil sites feeding the fear. Iran has hardened its terms, demanding an American climbdown before it reopens the strait, while President Trump has spoken of relying on economic pressure rather than strikes. For consumers, a sustained rise in crude feeds through to petrol and, in time, to inflation. Bond yields rose as the spike revived those fears. Watch whether the standoff eases or oil pushes higher.