The price of United States Crude oil rose 8% to $104.24 a barrel, and Brent crude oil, the international standard, rose 7% to $102.29 after the US said that it would blockade Iranian ports beginning Monday. US President Trump on Sunday announced that the US Navy would immediately begin a blockade on ships from entering or leaving the Strait of Hormuz as the 21-hour-long negotiations failed.
Brent crude has swung dramatically during the Iran war, rising from roughly $70 per barrel before the war in late February to more than $119 at times. On Friday, ahead of the peace talks, Brent for June delivery fell 0.8% to $95.20 per barrel. It rose again on Monday, as the Islamabad talks failed, and US President Donald Trump announced US 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,” Trump said hours after US Vice President JD Vance announced that no agreement could be reached during talks with Iran.
US Central Command said the blockade would be “enforced impartially against vessels of all nations” entering or departing Iranian ports and coastal areas, including all Iranian ports on the Persian Gulf and Gulf of Oman.
The CENTCOM said it would still allow ships travelling between non-Iranian ports to transit the Strait of Hormuz.
The Strait of Hormuz has been effectively controlled by Iran since the beginning of the war on February 28.
Around a fifth of the world’s traded oil (from 20-25%) typically flows through the Strait of Hormuz every day. Major oil-producing countries, including, Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran are majorly dependent of the Strait of Hormuz to export their produce.
On Trump’s threats, Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy on Sunday warned that any US misstep in the Strait of Hormuz could trigger severe consequences, saying hostile actions would trap American forces in “deadly whirlpools”.
Oil Prices Rise To $104.24 As US Moves To Block Iranian Ports After Failed Islamabad Talks
