Oil prices jump after Trump says Iranian ship seized

Key Points:

• Global oil prices surged on Monday morning in Asia following US President Donald Trump's announcement of the interception and seizure of an Iran-flagged cargo ship, amid escalating tensions over the Strait of Hormuz.
• Iran declared the closure of the Strait of Hormuz to commercial vessels, threatening to target any ship approaching the waterway, which is critical for about 20% of the world's oil and LNG shipments.
• Brent crude futures rose 4.74% to $94.66 per barrel, and West Texas Intermediate increased 5.6% to $88.55, reflecting market volatility driven by geopolitical developments between the US, Israel, and Iran.
• Negotiations were set to begin in Pakistan with the US delegation led by Vice-President JD Vance, but Iran's state media indicated no current plans to participate, prolonging uncertainty over the conflict resolution.
• The closure of the Strait has severely impacted energy supplies in Asia, prompting governments to implement energy conservation measures such as remote work, reduced working hours, and public appeals to limit air conditioning use.