from AZADEH AKBAR in Tehran, Iran
Special contributor
TEHRAN, (CAJ News) – THE Iran-US war entered another tense phase overnight as diplomatic efforts to secure safe passage through the Strait of Hormuz faltered, sending oil prices sharply higher and reviving fears of a prolonged global energy crisis.
The crucial waterway is not completely closed, but shipping remains severely restricted.
Only four vessels outbound and 10 inbound were recorded over the weekend, compared with a recent 10-day average of 14 daily transits.
Some ships may also have crossed without transmitting tracking signals.
The distinction is important.
Hormuz is a narrow passage between Iran and Oman linking the Persian Gulf with the Gulf of Oman and the Arabian Sea.
It is one of the world’s most important energy chokepoints, historically carrying about a fifth of global crude oil and liquefied natural gas shipments.
The latest disruption therefore threatens supplies far beyond the Middle East. Markets reacted immediately, with Brent crude rising almost 3 percent to about $107.60 a barrel on Monday.
Another report put oil above $108 after Gulf states postponed talks with Iran over arrangements for shipping through Hormuz.
The diplomatic picture is equally fragile.
Oman postponed a meeting involving Iran and Gulf Arab states intended to discuss a mechanism for managing maritime traffic through the strait.
The delay followed disagreements over proposed changes to an Iran-Oman arrangement, with Saudi Arabia among the countries raising concerns.
The setback comes as Washington and Tehran remain publicly divided over how the war should end.
US President Donald Trump has said he expects the conflict eventually to conclude and claims Iran wants negotiations, while also insisting that any settlement must be favourable to Washington.
Iran has continued demanding concessions, including changes to the blockade and access to frozen assets.
For motorists, the immediate consequence is higher fuel costs.
American petrol prices have already climbed, with the national average reaching about $4.31 a gallon, up 16 cents in a week.
For oil-importing economies, including countries across Africa, sustained prices above $100 threaten to raise petrol, diesel, transport and food costs.
The central question is now whether diplomacy can reopen Hormuz reliably. Until shipping resumes at normal levels and the fighting subsides, markets are likely to price in a significant geopolitical risk premium, keeping fuel expensive and the global economy under pressure.
– CAJ News