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Crude oil prices jumped as rising US-Iran tensions in the Middle East restricted shipping in and out of the Gulf, with Iran re-imposing its de facto closure of the Strait of Hormuz.

Brent crude oil price rallied 6.10% to $95.89 a barrel, while the US West Texas Intermediate (WTI) crude futures surged 7.49% to $90.13 a barrel.

The US-Iran war ceasefire is due to run until Tuesday, but is in doubt after the US seized an Iranian cargo ship and Tehran’s top military command vowed to retaliate.

Iran has re-imposed its closure of the Strait of Hormuz, though Kpler data showed that more than 20 vessels carrying oil products, metals, gas and fertiliser passed through it on Saturday, the busiest day for the chokepoint since March 1, Reuters reported.

Iran rejected new peace talks with the US, its state news agency reported on Sunday, hours after US President Donald Trump said he was sending envoys for talks in Pakistan and would launch new strikes on Iran unless it accepts his terms.

“Oil prices have surged sharply, with an approximate 7% spike, amid the approaching ceasefire deadline, intensifying fears of supply disruptions. This escalation has reversed the recent decline in crude prices, with Brent crude now trading in the $95–98 per barrel range,” said Ponmudi R, CEO of Enrich Money.

These developments have dampened earlier optimism and heightened uncertainty surrounding negotiations, keeping markets on edge, he added.

(With inputs from Agencies)

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