Oil prices accelerated more than 5% this Monday, the 20th, driven by fears that the ceasefire between the United States and Iran is threatening to fall apart after Washington’s seizure of an Iranian cargo ship.
An event that keeps transit through the Strait of Hormuz practically paralyzed, adding pressure to the markets.
At 7:44 am, Brent futures registered a rise of 5.32%, settling at $95.22 per barrel, while US West Texas Intermediate (WTI) rose 5.90% to $88.80 per barrel.
These gains come after last Friday’s sharp correction — when both contracts fell around 9%, the biggest daily drop since April 18.
The reversal of expectations began when Tehran assured that the passage of commercial ships through the Strait of Hormuz remained open during the ceasefire, a position that was accepted by the White House, but the seizure of the cargo ship reignited fears of escalation.
Along these lines, June Goh, senior analyst at Sparta Commodities, told Reuters that, in the 24 hours following Friday’s announcement, oil tankers continued to be the target of actions by the Islamic Revolutionary Guard Corps, intensifying the reluctance of shipowners to transit through the region.
Following geopolitical concerns, analysts also highlight the effects on fundamentals: between 10 and 11 million barrels per day remain retained, a volume that worsens the perception of supply risk and helps explain the strong price impulse at the beginning of this week.
