Oil prices jumped above $100 a barrel as energy markets reopened on Monday in Asia after negotiations between the US and Iran concluded without a new deal. Former President Donald Trump announced intentions to blockade Iranian ports, further escalating tensions.
Global benchmark Brent crude is reported at $102.37 per barrel, a rise of 8.5%, while West Texas Intermediate surged 9% to $105.34 per barrel.
The lapse in negotiations raises significant concerns over a potential deepening of the global energy crisis.
The oil prices had previously decreased below $100 when a temporary ceasefire between Washington and Tehran was agreed upon, allowing for the reopening of crucial oil trade routes in the Strait of Hormuz.
This vital waterway carries a significant proportion of the world’s energy shipments and has become increasingly fraught as Iran warns of retaliation against vessels following US-Israeli military actions.
Since the onset of the conflict on February 28, global oil shipments have been disrupted, although some nations have secured safe passage for their vessels.
As energy prices continue to spike worldwide, Trump’s recent statement on social media indicated the US would blockade all ships attempting to navigate into or out of the Strait of Hormuz.
US Central Command has announced that the blockade will commence at 10:00 ET (14:00 GMT) on Monday and will apply to vessels from all nations.
Iranian officials have signaled that they will not conform to any threats, with the Islamic Revolutionary Guard Corps warning that any military vessels approaching the Strait would be treated as violations of the ceasefire.
