Global oil prices continued their sharp climb on Monday as markets reacted to the ongoing Strait of Hormuz disruption, one of the most critical energy chokepoints in the world.
Benchmark Brent Crude briefly surged above $106 per barrel on Sunday before easing slightly in early trading. As of 04:30 GMT, Brent was trading around $104.63 per barrel, representing a gain of nearly 1.5 percent.
The Brent crude price surge reflects growing fears that shipping through the Strait of Hormuz may remain blocked for an extended period, threatening global energy supplies.
Trump pushes coalition to reopen key oil route
Amid the deepening global oil supply crisis, Donald Trump has called on major powers to form a coalition aimed at restoring safe passage through the strategic waterway.
In an interview with the Financial Times, Trump urged several countries—including China, Japan, France, and the United Kingdom—to deploy naval forces to escort commercial ships.
The proposal, often referred to as the Trump Hormuz coalition plan, has so far received a cautious response. None of the countries mentioned have publicly committed to sending naval vessels to secure the waterway.
Trump warned that NATO could face a “very bad future” if the proposal fails to receive support.
Iran shipping blockade halts oil traffic
The crisis escalated after Iran effectively halted shipping in the Strait of Hormuz in retaliation for recent strikes carried out by the United States and Israel.
The Strait of Hormuz disruption is particularly significant because the narrow waterway normally carries about one-fifth of the world’s oil supply.
According to the International Energy Agency, the shutdown represents the largest disruption to global energy supplies in modern history.
Energy analysts say the blockade has already pushed global oil prices more than 40 percent higher since the war began in late February.
Shipping traffic plunges dramatically
Data from the United Kingdom Maritime Trade Operations (UKMTO) shows how dramatically shipping has declined in the region.
Before the conflict, the strait handled an average of 138 ships per day. Since the war began, the number has dropped to fewer than five vessels daily.
The UKMTO has also reported at least 16 commercial ships attacked in the region since February 28, raising concerns among shipping companies and insurers.
US considering naval escorts
The Trump administration has repeatedly said it is prepared to deploy the United States Navy to escort commercial vessels through the waterway if necessary.
However, officials indicated that such operations may not begin immediately. According to administration sources, warships are expected to be deployed only after Iran’s military capabilities have been further weakened.
If the shipping disruption continues, economists warn the global oil supply crisis could push fuel prices even higher worldwide, potentially slowing economic growth and increasing inflation in energy-importing nations.