Oil back above $100 as US to blockade Iranian ports after peace talks fail
Oil Prices Rebound Above $100 Amid US-Iran Dispute
Global oil markets experienced a notable increase on Monday, with prices climbing above $100 per barrel. The surge followed the collapse of peace talks between the United States and Iran, which left no new agreement in place. President Donald Trump announced plans to implement a blockade on Iranian ports, adding pressure to energy prices. Brent crude rose 7.3% to $102.30, while West Texas Intermediate gained 8.7% to $104.94.
The failure of weekend negotiations has sparked fears of a prolonged energy crisis. Prices had dropped below $100 the previous Wednesday when a conditional ceasefire deal was reached between Washington and Tehran. This deal allowed the reopening of the Strait of Hormuz, a critical waterway for global energy trade. However, the agreement was short-lived, as tensions reignited after Iran retaliated against US-Israeli strikes by threatening to target vessels using the strait.
Since the conflict began on 28 February, maritime traffic through the strait has been nearly halted. While nations like India and Malaysia secured safe passage for their ships, the disruption has caused worldwide price spikes. Analysts had hoped the ceasefire would stabilize markets, but its collapse has led to renewed volatility. The US-Iran talks were closely monitored for signs of easing tensions, according to Chua Yeow Hwee of Singapore’s Nanyang Technological University.
“Oil prices are likely to remain elevated because expectations now depend on whether the blockade is fully implemented, whether shipping disruptions spread, and whether diplomacy resumes,” said Chua Yeow Hwee.
Centcom, the US Central Command, confirmed the blockade will commence at 10:00 ET on Monday. The measure targets all vessels attempting to enter or leave Iranian ports, though it will not hinder ships heading to non-Iranian destinations. The strait, which handles a fifth of global energy shipments, remains a central point of contention. Iranian parliamentary speaker Mohammad Bagher Ghalibaf emphasized the country’s refusal to accept external threats in a statement shared by local media.
Analyst Saul Kavonic from MST Marquee noted that oil prices have “rewound” to levels before the ceasefire agreement. He suggested that further price rises depend on the conflict’s escalation. “The truth is, oil prices are not as high as they normally would be,” Kavonic explained. “But if that doesn’t happen, oil prices will head higher,” he added.
Asian stock markets also dipped on Monday, with the Nikkei 225 in Japan falling 0.7% and South Korea’s Kospi down 1%. The region has been particularly affected by the energy crisis, as it relies heavily on Middle Eastern oil supplies. US stock futures hinted at a weaker opening for Wall Street, reflecting broader market uncertainty.
