Oil Prices Surge Past $91 as US-Iran Ceasefire Collapses

The recent collapse of the US-Iran ceasefire has sent oil prices surging past $91 per barrel, as the conflict in the Strait of Hormuz continues to disrupt global energy supplies.

The June peace framework between Washington and Tehran was meant to calm energy traders by ensuring safe passage through the critical waterway, which handles about 20 million barrels a day. However, the agreement expired on August 17 without significant progress, and attacks on tankers have intensified in recent weeks.

Data from Al Jazeera shows that only 513 ships crossed the Strait of Hormuz in the first 18 days after the June 17 memorandum took effect, far below the pre-war pace of about 100 ships a day. This has had a significant impact on oil prices, with Brent crude closing at $90.87 per barrel on Monday.

The situation is further complicated by rising bond yields, which have reached their highest level since June 2007. The 30-year Treasury yield rose to 5.31% on Monday, while the 10-year yield reached about 4.725%. This has put pressure on investors, who are grappling with the implications of a broken truce and its potential impact on inflation expectations.