Crude oil prices surge 7% due to rising tensions between the US and Iran at sea

Crude oil prices: Amidst discussions about a peace meeting between the US and Iran, reports of new tensions at sea are emerging. The US has seized an Iranian cargo ship. Crude oil prices are experiencing a surge due to the escalating tensions.

Crude oil prices surge 7% due to rising tensions between the US and Iran at sea, raising questions about the peace talks meeting, what will happen next?

Crude oil prices are seeing another big jump on Monday, April 20, 2026, the first day of the week. West Texas Intermediate (WTI) rose 7.5% to $90.17 per barrel at around 6:30 am today, which reached $88.452 per barrel at 7:30 am. Besides, international oil benchmark Brent crude, which had risen 6.5% to reach $96.27 per barrel, has now reached $94.644 per barrel. This big jump in crude oil prices is the result of increasing tension in the sea between the US and Iran.

Rising tensions between the US and Iran are impacting crude oil prices

1. On the one hand, the US is announcing the next round of peace talks with Iran in Pakistan. On the other hand, it has seized a Tehran cargo ship in the Gulf of Oman.

2. Following the attack on the Iranian ship in the Gulf of Oman, the Iranian military has now launched drone attacks on the US ship. It has also warned of major action.

3. Iran's military headquarters stated that the US military's attack and seizure of the Iranian-flagged ship violated the terms of the ceasefire and amounted to piracy. 

4. The US, meanwhile, said the Iranian ship had crossed the blockade line, leading to firing and seizure.

5.US President Donald Trump also confirmed the seizure of the ship and stated that the contents of the vessel are being examined.

6. Even before the ceasefire between the two sides expires on April 22nd, tensions appear to be rising.

7. This escalating tension is impacting crude oil prices.

Question mark on peace talks meeting

US President Donald Trump has stated that his representatives have left for the next round of peace talks in Islamabad and will arrive by Monday evening. Meanwhile, Iran is indicating that it does not want to participate in peace talks with the US. US President Donald Trump has already warned that if Iran does not agree to his conditions, all its power plants and bridges will be destroyed.

Fears of a rise in crude oil prices

If a ceasefire between the US and Iran is not reached soon, the situation could become even more serious. The US has also imposed a blockade on the Strait of Hormuz, where Iran was already preventing shipping from passing through. This route supplies approximately one-fifth of the world's oil and gas. India also imports approximately 80% of its oil and gas needs from here.

In such a situation, rising oil prices could create an economic crisis for many countries, including India. The ongoing tensions between the US and Iran have not only disrupted the supply of essential commodities like oil and gas. The world may also have to pay a long-term price for the massive damage caused to oil refineries in this war.