Oil Jumps as Iran Hardens Hormuz Stance, Dimming US Deal Hopes

Global oil prices rose sharply on Monday after Iran doubled down on restrictions in the Strait of Hormuz, as fading prospects of a deal with the United States heightened fears of prolonged supply disruption.

Brent crude climbed to around $110 a barrel while US West Texas Intermediate hovered near $96, extending gains from last week as traders reacted to tightening flows through the strategic waterway, which carries about a fifth of global oil shipments.

The latest surge reverses an earlier slide in prices after Iran and the United States signalled a temporary ceasefire, a move that had briefly pushed crude below $100 a barrel on expectations of easing tensions.

Diplomatic efforts over the past week have since faltered. Iranian officials engaged in shuttle diplomacy across regional capitals, while US representatives were expected to join talks aimed at securing a broader agreement.

However, the negotiations broke down after disagreements over preconditions, with Tehran insisting that US military pressure be lifted before any reopening of the strait.

A proposal by Iran to partially restore shipping through Hormuz while deferring more contentious issues has yet to gain traction, leaving the situation at a standstill.

The standoff has effectively choked traffic through one of the world’s most critical oil arteries, raising concerns of sustained supply shortages and adding volatility to global energy markets.

For African economies, the renewed spike in oil prices is likely to deepen existing pressures. Many countries across the continent rely heavily on imported fuel, making them particularly vulnerable to global price swings.

Higher fuel costs are expected to feed into transport and electricity prices, driving up the cost of food and other essential goods and complicating efforts to contain inflation.

Governments already grappling with strained budgets may face increased subsidy burdens, while weaker currencies could amplify the impact of rising import bills.

With no clear breakthrough in sight, analysts warn that continued disruption in the Strait of Hormuz could keep oil prices elevated, prolonging economic strain for fuel-importing nations, particularly across Africa.

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