Oil prices jump: Brent rises to $96.30, WTI at $90.22 as Tehran rejects 2nd round of US-Iran talks

Oil prices jumped during early Monday (April 20, 2026) trading in Asia, with WTI crude at $90.22/barrel, up $6.37 or 7.60%, and Brent crude at $96.30/barrel, $5.92 or 6.55% higher, as of 8:36 am Tokyo time [or 11:36 pm GMT Sunday].

The gains came as markets tracked renewed geopolitical risk, while Murban crude fell 9.80% to $91.70 and natural gas rose 1.42% to 2.712.

Oil prices jumped due to a stacking of risks: military escalation, uncertain shipping through the Hormuz oil artery, potential stalling of diplomacy, and fears of prolonged supply shortages.

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Brent and WTI crude benchmarks are trading higher early Monday mainly due to renewed geopolitical risk in the Middle East — especially around the Strait of Hormuz.

Here are the key drivers behind the spike:

Renewed US–Iran military escalation

Oil surged after fresh clashes between the United States and Iran over the weekend, including reports of attacks on vessels and the seizure of an Iranian-flagged ship.

These incidents signalled that tensions were not de-escalating as markets had hoped.

Continued disruption (and uncertainty) in the Hormuz

The strait — a 33-km chokepoint for roughly 20% of global oil supply — remains unstable.

Iran had earlier suggested reopening it, but later reversed course amid ongoing conflict and a US naval blockade.

Even when partially open, analysts say shipping confidence is "low", meaning oil flows are still constrained.

Uncertainty of peace talks

Planned negotiations in Pakistan have not been confirmed by Iran, and earlier talks stalled over major disagreements.

This removed a key factor that had briefly pushed prices down the previous week.

Markets are highly sensitive to diplomacy — and the lack of progress raised fears the conflict could drag on.

Rising “war risk premium” in oil markets

Traders quickly priced in the risk of:

• Wider regional conflict

• Attacks on energy infrastructure

• Prolonged supply disruptions

Broader global energy shock

Countries and markets are reacting to what officials describe as a major energy disruption, with ripple effects on crude oil rates, inflation, and economic outlooks worldwide.

Energy industry analysts say that as long as the Hormuz situation and US–Iran tensions remain unresolved, continued volatility and upward pressure on oil prices is expected.