Oil Prices Rise Again as Strait of Hormuz Situation Becomes Tense Once More

New York (ANTARA) - Crude oil futures prices rose sharply on Monday Indonesian time or Sunday (19/4) night New York time, US, amid increasing tensions in the Strait of Hormuz and the second round of US-Iran peace talks showing no progress. West Texas Intermediate crude futures for May delivery reached $91.2 US (US$1 = Rp17,189) per barrel at the start of trading or up 8.76% from Friday's (17/4) closing price. Meanwhile, Brent crude futures for June delivery reached a high of $97.5 US per barrel, up from the previous session's closing price of $90.38 per barrel. Thirty-five ships intending to sail out turned back in the last 36 hours after Iran reimposed control over the Strait of Hormuz, according to a London-based maritime analysis firm on Sunday. On Saturday (18/4) night, the Iranian Islamic Revolutionary Guard Corps (IRGC) Navy announced that the Strait of Hormuz had been blocked. This announcement followed the Iranian government's declaration on Friday that the strait would be opened to all commercial ships during the Lebanon-Israel ceasefire period. In addition, Iran's official news agency, IRNA, stated on Sunday that the country refused to participate in the second round of peace talks with the US. The renewed tense situation also caused US stock futures indices to plummet on Sunday night, with precious metals futures prices falling significantly. Optimism regarding the resumption of trade flows in the Strait of Hormuz led to a more than 11% drop in West Texas Intermediate crude futures prices for May delivery, while the S&P 500 Index and Nasdaq Composite Index recorded new all-time highs on Friday. The Strait of Hormuz, a vital shipping corridor accounting for about 20% of global oil flows, has effectively been closed to oil tanker transits since the outbreak of conflict in the Middle East at the end of February.