Global oil prices surged past $91 per barrel on Monday after President Donald Trump cast doubt on a potential new deal with Iran to extend an expiring ceasefire.
The Brent crude benchmark closed at $90.87, up 2.65% for the day, while U.S. crude oil settled at $84.50, a 2.5% increase. The gains followed a relatively flat trading session until Trump’s remarks in the Oval Office.
Treasury yields also climbed, with the 10-year yield rising to 4.72% and the 30-year yield exceeding 5.3%, its highest level since June 2007. Stock indexes extended losses, with the S&P 500 down 0.5% and the Nasdaq falling 0.3%.
During the Oval Office event, Trump reiterated his stance on the Strait of Hormuz, a critical shipping route, stating that U.S. forces “control” the waterway. He suggested declaring it U.S. territory and claimed American naval forces maintain a blockade along Iran’s coastline.
Shipping data contradicted Trump’s claim of an “open” Strait of Hormuz. According to MarineTraffic, only three ships crossed the strait on Sunday and 10 on Saturday, representing a 19.5% decline from the prior week. Before regional conflicts, the strait typically saw about 130 daily crossings.
Trump also addressed concerns about the USS Abraham Lincoln aircraft carrier, which has been deployed for more than 240 consecutive days. He dismissed worries over long deployments, stating that U.S. forces maintain control over the region.
In a Fox News interview on Sunday, Trump warned that the U.S. would take “strong action” if Oman interfered with operations in the Strait of Hormuz, according to the network’s reporting.
Iranian officials denied ongoing negotiations with the U.S. regarding the strait or regional security. The country has previously rejected claims of U.S. control over the waterway, asserting that it remains an international passage.
The dispute over the Strait of Hormuz has intensified amid broader tensions between the U.S. and Iran, including sanctions and military posturing. The strait, a chokepoint for about 20% of global oil supply, remains a flashpoint in regional geopolitics.
Energy analysts attributed the oil price surge to geopolitical risk premiums, as traders priced in potential disruptions to shipping routes. The U.S. Energy Information Administration had previously noted that crude oil inventories fell by 2.2 million barrels last week, adding to market tightness.
The Federal Reserve’s interest rate policy also contributed to market movements, with rising yields reflecting expectations of prolonged monetary tightening. Analysts warned that sustained higher oil prices could increase inflationary pressures and weigh on economic growth.
The White House has not issued an official statement clarifying Trump’s remarks on the Strait of Hormuz or the proposed declaration of U.S. control. The State Department and Pentagon have not responded to requests for comment.