Stocks Market
Oil Prices Surge 6% as US-Iran Tensions Escalate Over Seized Cargo Ship
Oil prices surged dramatically in Asian trading on Monday following the US seizure of an Iranian cargo ship in the Gulf of Oman, reigniting fears about disruptions to global oil flows through the strategic Strait of Hormuz. West Texas Intermediate jumped 6.14% to $89 per barrel while Brent crude rose 5.65% to $95.49, as Iran promised swift retaliation and announced it would reimpose strict control over the vital shipping lane.
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Oil Markets Rally as Middle East Tensions Resurface
Crude oil prices surged sharply in Asian trading sessions on Monday, April 20, 2026, after the United States seized an Iranian cargo vessel in the Gulf of Oman, triggering fresh geopolitical tensions in the Middle East.
The West Texas Intermediate (WTI) contract, the benchmark for US crude, climbed 6.14% to settle at $89.00 per barrel, after rallying as much as 8% during the session. Meanwhile, North Sea Brent, the global benchmark, gained 5.65% to reach $95.49 per barrel.
This dramatic reversal comes after hopes of resumed negotiations between Washington and Tehran had driven oil prices lower last week. However, the situation took a drastic turn over the weekend.
Iran Vows Retaliation
Iran has promised to "retaliate soon" following the US Navy's takeover of the Iranian cargo ship Touska in the Gulf of Oman. US President Donald Trump had earlier announced that the US Navy opened fire on the Iranian vessel and took control of it.
Furthermore, Tehran currently does not intend to "participate in the next Iran/US discussion session," reported Iranian state television on Sunday.
面对美国对其港口的持续封锁，伊朗周六宣布将重新对霍尔木兹海峡实施"严格控制"，收回了前一天重新开放这条重要航道 的决定。全球五分之一的石油和天然气贸易通常通过这条海峡运输。
Market Impact
"The most impactful information for markets is undoubtedly the seizure of an Iranian ship by the US military in the Gulf of Oman, with Iran immediately announcing it would carry out reprisals," noted Chris Weston, analyst at broker Pepperstone.
"The tone is risk-averse at the start of this week... The normalization of transit through Hormuz was perceived as a major diplomatic victory. However, in the absence of a comprehensive agreement on Iran's nuclear program, the ceasefire remains fragile," he added.
Asian equity markets showed mixed reactions. In Tokyo, the benchmark Nikkei index closed up 0.59% at 58,824.89 points, while the broader Topix rose 0.43% to 3,777.02 points. Seoul's Kospi gained 0.44%, Sydney added 0.07%, Taipei climbed 0.42%, and Hong Kong's Hang Seng was up 0.73% around 06:30 GMT.
"The renewed closure of the Strait of Hormuz has dampened market momentum at the start of this week; however, investors remain remarkably optimistic," observed Thomas Mathews from Capital Economics.
Given the potential for heightened volatility, market operators may favor "stocks of companies that have recently posted solid quarterly results," advised analysts at Tokai Tokyo Intelligence.
Commodities and Currencies
Gold retreated 0.88% to $4,788 per ounce by 06:30 GMT, as the precious metal lost its appeal as a safe-haven asset. The prolonged conflict in the Middle East and recent escalation have fueled expectations of sustained inflationary pressures, making it more likely that central banks will maintain or even raise interest rates—developments that typically weigh on non-yielding assets like gold.
The US dollar strengthened 0.21% against the Japanese yen, with one dollar buying 158.98 yen.