Crude oil markets swung sharply on Monday after U.S. President Donald Trump called off a planned major military strike on Iran, triggering a 7 percent plunge in prices even as he later warned that the Islamic Republic was on the brink of “decapitation,” according to Ship & Bunker.
According to Ship & Bunker, Brent crude fell $6.35, or 7 percent, to settle at $83.77 per barrel, while West Texas Intermediate dropped $4.33, or 5.1 percent, to close at $80.34 per barrel. The report notes that the sell-off came despite Iran rejecting a planned resumption of peace talks, a move that appeared to reverse the market’s initial optimism as the session progressed.
Ship & Bunker reports that Trump, writing on Truth Social, accused Iranian leaders of being “duplicitous” after they appeared to back away from negotiations. He stated that Tehran was being given “every last chance before decapitation,” while noting that Iran claimed to be dealing only with Oman rather than engaging directly with Washington.
Tensions Persist in Key Waterways
On the fundamentals side, Ship & Bunker reports that the United Kingdom Maritime Trade Operations recorded three additional tanker attacks attributed to Iran since Saturday, with vessel traffic slowing over the weekend in both the Strait of Hormuz and the Bab el-Mandeb. According to the report, Mohsen Rezaee, an adviser to Iran’s supreme leader, said on Iranian state television that talks with Oman aimed at easing shipping congestion through the Strait were progressing, but that Washington needed to “take the first step and change its behavior.”
Carolyn Kissane, associate dean at New York University’s Center for Global Affairs, told Ship & Bunker that the pattern of easing and re-escalation is likely to continue. “Iran doesn’t want to escalate but does want to keep up the tension, and there will be more attacks after this market retreat; we have been here before,” she said, as quoted in the report.
Tony Sycamore, an analyst at IG, was also cited by Ship & Bunker, questioning whether the week ahead would repeat the volatile pattern seen previously, with hopes for a diplomatic breakthrough potentially collapsing again as “Iran digs in its heels and continues to leverage its control over the Strait.”
Does This Matter to You?
According to the source material, tanker traffic through the Strait of Hormuz and Bab el-Mandeb has already slowed amid the reported attacks, a development with direct relevance for vessel routing, voyage planning, and freight costs in these corridors. Continued volatility in Brent and WTI benchmarks, as reported by Ship & Bunker, may also influence bunker fuel pricing trends given the close relationship between crude markets and fuel costs.
The source material does not provide further detail on specific vessel incidents or bunker price impacts beyond the benchmark movements noted, so the broader operational implications remain unclear at this time.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
