Global crude oil prices jumped over three per cent, extending the previous session’s gains, as the Strait of Hormuz waterway remained largely shut.
Brent crude was trading three and a half per cent up at 111 US dollars and 99 cents per barrel, while West Texas Intermediate crude was trading 4.8 per cent higher at 100 US dollars and 99 cents per barrel when reports last came in.
The latest rise came as Iranian Foreign Minister Abbas Araghchi shared proposals to reopen the strait with interlocutor Pakistan amid stalled peace negotiations between Washington and Tehran.
The US has not commented publicly on the Iranian proposal, which would set aside the thorny issue of Iran’s nuclear programme to a later date.
Iran’s threats against commercial shipping have reduced maritime traffic in the strait to a trickle over the past two months, paralysing a significant portion of the world’s oil and natural supplies.
Only eight vessels crossed the strait on Sunday, down from 19 transits the previous day, according to ship tracking data monitored by maritime intelligence platform Windward.
Before the US and Israel launched their war on Iran on February 28, an average of 129 vessels passed the strait each day, according to the United Nations Trade and Development (UNCTAD).
The blockade and attacks on regional energy infrastructure have reduced global oil production by 14.5 million barrels per day, according to a Goldman Sachs estimate.