Oil prices climbed for a fifth consecutive day as the Strait of Hormuz remained closed, intensifying market volatility. The U.S. and Iran showed no signs of resuming peace talks, deepening concerns over prolonged geopolitical tensions. Analysts link the rally to fears of disrupted oil shipments, with Brent crude surging 2.5% and U.S. crude rising 1.8% on Monday. Traders are closely monitoring market volatility, anticipating further instability if hostilities persist.

The Strait of Hormuz closure has raised alarms about global oil supply chains, as the waterway handles 20% of daily global oil trade. While no official shutdown date was announced, reports indicate naval blockades have effectively halted traffic. This development has prompted energy firms to reassess logistics, with ExxonMobil and Shell issuing cautious outlooks on refining capacity. Investors are hedging against potential price spikes, driving demand for alternative energy sources.

Geopolitical risks now dominate energy markets, overshadowing earlier optimism about easing tensions. U.S.-Iran relations have deteriorated since the 2023 nuclear deal collapse, with sanctions tightening and regional proxies escalating confrontations. Analysts warn that prolonged standoffs could trigger a crude oil price surge, impacting inflation and central bank policies. Markets remain split on whether diplomatic efforts will resume before summer.

The market volatility reflects broader uncertainty, as traders balance geopolitical risks against seasonal demand forecasts. While OPEC+ maintains production cuts, the Strait of Hormuz blockade introduces new supply-side pressures. Experts caution that even short-term disruptions could push prices above $90 a barrel, testing investor resilience. For now, the lack of U.S.-Iran dialogue keeps energy markets on edge, with no clear resolution in sight.