Oil Prices Jump as Iran Closes Strait of Hormuz

Global oil prices rose approximately 3% on Monday, with Brent crude reaching $86.03 and WTI hitting $80.61 per barrel. The price surge follows a decision by the Government of Iran to keep the Strait of Hormuz closed until the United States lifts sanctions, pays reparations, and ends military threats.

Iranian Foreign Minister Abbas Araqchi stated that talks with Washington will not resume while the U.S. remains in breach of a June interim deal. The closure of the strategic waterway, which carries one-fifth of global oil and LNG, coincides with reports from the Abu Dhabi National Oil Company that 15 of its vessels have been attacked in the strait since February.

Energy supplies face additional pressure from targeted attacks on infrastructure. Iran-backed Houthi militants claimed responsibility for a weekend strike on Saudi Aramco's Jazan refinery in southwest Saudi Arabia. The Saudi Ministry of Petroleum and Mineral Resources confirmed a fire occurred at a crude storage tank, forcing Aramco to delay the restart of the 400,000-barrel-a-day complex until approximately August 30.

Simultaneously, Ukrainian forces attacked Russian energy infrastructure, including the ZapSibNeftekhim plant and the Taneco refinery. These combined disruptions have strained the global diesel market, triggering a jump in U.S. and European diesel futures.