Oil markets opened sharply higher, surging past the $100 per barrel mark once again after US President Donald Trump announced that a blockade of Iranian ports would begin from Monday (local time).US crude oil or WTI skyrocketed 8% to $104.24 per barrel, while Brent crude, the global benchmark, soared 7% to $102.29 in early trading.The rally followed a tense and volatile session after peace talks between the United States and Iran ended on a cold note, with prices already pushing above $100 a barrel amid reports that the US Navy was preparing to block vessels from reaching Iran through the Strait of Hormuz. Trump said on Sunday that the US Navy would proceed with the blockade of the Strait of Hormuz. “Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz. At some point, we will reach an “ALL BEING ALLOWED TO GO IN, ALL BEING ALLOWED TO GO OUT” basis, but Iran has not allowed that to happen by merely saying, “There may be a mine out there somewhere,” that nobody knows about but them,” he wrote on Truth Social.Commenting on market conditions, Saul Kavonic, head of energy research at MST Marquee said, “The market is now largely back to conditions before the ceasefire, except now the US will block the remaining up to 2 million barrels per day Iranian linked flows through the Strait of Hormuz as well.”He also noted that oil and fuel prices could stay elevated through November’s midterm elections, acknowledging possible political consequences following the decision taken six weeks after the strike on Iran.Since the conflict began, Brent crude has experienced steep fluctuations, rising from about $70 per barrel before the war in late February to peaks above $119 at certain points. Ahead of the latest developments, Brent for June delivery slipped 0.8% to $95.20 per barrel on Friday.After US-Israel launched strikes on Iran on February 28, Tehran has maintained effective control over the Strait of Hormuz, a vital maritime chokepoint for global energy flows, as tensions across the region continue to disrupt shipping through the key oil transit route.US Central Command stated that the blockade would be enforced “impartially against vessels of all nations” entering or leaving Iranian ports and surrounding coastal waters, including those in the Persian Gulf and Gulf of Oman.At the same time, it confirmed that ships travelling between non-Iranian ports would still be permitted to pass through the Strait of Hormuz.The strait typically handles around one-fifth of global oil trade each day, with major exporters including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran. Marine tracking data shows that despite the ceasefire, traffic through the strait has remained subdued, with over 40 commercial vessels crossing since the truce began.
