The U.S. Navy seized the Iranian vessel Touska near the Strait of Hormuz, triggering a sharp climb in oil prices as market participants fear a prolonged supply disruption. The move has reignited concerns that the region could become a bottleneck for global crude flows. Earlier this week, West Texas Intermediate fell more than 9% after Iran agreed to reopen the Strait and U.S. officials signaled optimism about potential peace talks. That optimism evaporated when the U.S. intercepted Touska, a vessel accused of attempting to breach the blockade. Following the seizure, WTI surged 6.21% to $89.06 while Brent climbed 5.27% to $95.14. The spike comes after a dramatic sell‑off on Friday, and it follows the transit of more than 20 vessels through the Strait on Saturday, the highest volume since March 1. ADNOC Managing Director Dr. Sultan Al Jaber noted that 50 days of a closed Hormuz have already blocked almost 600 million barrels of oil, underscoring the scale of the potential disruption. Al Jaber said the Strait must be returned to the world "exactly as it was," while Iranian officials condemned the seizure as "maritime piracy" and warned of imminent retaliation. President Trump stated that U.S. negotiators would be in Islamabad and that if Iran did not accept the deal, the U.S. would target every power plant and bridge in the country. Market participants will monitor Monday's talks closely, wary of any announcement that could further tighten the Strait. Until a durable resolution emerges, supply uncertainty is likely to keep prices elevated and could pressure tanker traffic, LNG, jet fuel, and fertilizer markets.