Oil prices jump, markets shake amid US-Iran ceasefire uncertainty

New Delhi: Global energy prices surged on Monday as the Islamic Revolutionary Guard Corps announced the imminent closure of the Strait of Hormuz, citing a failure by the United States to adhere to ceasefire conditions. Monday morning saw Brent Crude rising by 4.72 per cent to USD 94.65 per barrel, while West Texas Intermediate (WTI) climbed 5.51 per cent to reach USD 88.47.

The volatility weighed on US equity expectations, with Dow Jones Futures dropping 367.44 points, or 0.74 per cent, in early trade. Gold prices softened slightly, trading at USD 4,807.93 per ounce.

In Asian markets, Japan's Nikkei 225 rose 614.10 points, or 1.05 per cent, to reach 59,090.00. South Korea's KOSPI added 1.32 per cent to 6,273.92, and the Taiwan Weighted index gained 413.85 points to trade at 37,218.19. In Hong Kong, the Hang Seng edged up 0.61 per cent to 26,321.00, while China's Shanghai Composite recorded a 0.52 per cent increase. Conversely, Singapore's Straits Times index saw a marginal decline of 0.06 per cent, according to market data.

Earlier on Friday, Iran's Revolutionary Guard announced that the Strait of Hormuz would remain closed from that evening, CNN reported.

In a statement, the IRGC said several vessels passed through the Strait of Hormuz on Friday, but "due to the violation of the ceasefire conditions, the American enemy did not lift the naval blockade of Iranian vessels and ports", according to CNN.

"Therefore, from this evening, the Strait of Hormuz will be closed until this blockade is lifted," the statement read, as per CNN.

"We warn that no vessel should move from its anchorage in the Persian Gulf and the Sea of Oman, and approaching the Strait of Hormuz will be considered cooperation with the enemy, and the violating vessel will be targeted", the statement continued, as reported by CNN.

"Also, we inform all vessels and their owners to follow news only from the official IRGC Navy authority and through Channel 16, and the statements of the terrorist US president in the Strait of Hormuz and the Persian Gulf have no credibility", it concluded, CNN reported.