Oil surges 5% as U.S.-Iran tensions make Hormuz reopening unlikely
Business
Oil prices jumped 5% on Monday as tensions between the US and Iran heated up, making it less likely that the crucial Strait of Hormuz, a major route for global oil, will reopen.
Brent crude hit $87.72 per barrel and West Texas Intermediate reached $82.13, both seeing their biggest one-day gains since late July.
Stalled U.S.-Iran talks amplify supply risks
Iran wants US sanctions lifted, while President Trump is pushing for compensation over alleged Iranian actions, keeping negotiations stuck.
On top of that, Ukraine continued to attack Russian energy infrastructure, adding to supply worries.
Delays in restarting Saudi Aramco's Jazan refinery after Houthi attacks and a drop in US Strategic Petroleum Reserve stocks to their lowest since 1983 have only added more uncertainty to the mix.