Global crude oil prices experienced a sharp increase, with Brent crude rising 7% to nearly 97 USD per barrel and US WTI crude increasing 8% to 90 USD on 20/4. Concurrently, global gold prices fell 76 USD to 4,753 USD an ounce. These market shifts reversed trends from the previous weekend, driven by escalating tensions in the Middle East.
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Brent oil prices have fluctuated sharply in recent months. Chart: Trading Economics
The recent surge in tensions follows US President Donald Trump's announcement on 19/4 that the US military fired upon and seized an Iranian container ship in the Gulf of Oman. Trump stated the vessel attempted to breach a US naval blockade to access Iranian ports but failed.
This incident occurred after Iran attacked an oil tanker in the Hormuz Strait on 18/4. Iran's Islamic Revolutionary Guard Corps reportedly fired at the tanker, and UK Maritime Trade Operations also noted another container ship was hit by an unidentified object.
Amidst these developments, Trump issued further threats, stating he would destroy all power plants and bridges in Iran if its leadership did not accept an agreement with the US. He labeled Iran's recent ship attacks a "complete violation" of the ceasefire agreement between the US and Iran, which is scheduled to expire this week.
The prospect of a second round of peace talks between the US and Iran in Pakistan remains uncertain. While Trump indicated plans for negotiations in Islamabad on 20/4, Iran declared it would not participate as long as the US blockade remained active and other disagreements persisted, according to Israel's IRNA news agency.
These renewed tensions abruptly escalated last weekend, just after the US and Iran seemed to be nearing a deal. Oil prices had briefly plummeted on 17/4 when Iran unexpectedly announced a temporary full opening of the Hormuz Strait for commercial vessels, in response to a ceasefire between Israel and Lebanon. However, Iran maintained many previous movement restrictions.
Trump did not lift the US blockade on Iranian ports, and nearly a day later, Tehran announced the re-closure of Hormuz.
Ha Thu (according to Reuters, CNBC)
