Global crude oil prices surged sharply on Monday, jumping more than 7% as markets reacted to an imminent U.S. naval blockade of the Strait of Hormuz, a critical global oil transit chokepoint.
Brent crude rose above $100 per barrel, trading around $101–$102, while U.S. West Texas Intermediate (WTI) climbed to roughly $104 per barrel.
The price spike follows an order by U.S. President Donald Trump directing the Navy to begin blocking vessels linked to Iran after the collapse of high-level U.S.–Iran negotiations in Islamabad.
The Strait of Hormuz handles roughly 20% of global oil supply, making it one of the most strategically sensitive energy routes in the world.
Any disruption immediately introduces a risk premium into oil markets. The planned blockade is expected to target ships entering or leaving Iranian ports, though U.S. officials indicate that vessels bound for non-Iranian destinations may still be allowed passage.
Market reaction has been driven by fears of supply disruption and escalation. Shipping activity has already been affected, with some oil tankers avoiding the strait altogether, signaling early breakdown in normal crude flows.
Analysts note that geopolitical tensions in the Middle East are now the dominant driver of oil pricing, with the blockade reintroducing volatility and raising the احتمال of prolonged high energy costs globally.
There are also warnings that if the blockade fully restricts flows, crude prices could rise significantly higher, potentially exceeding $120–$150 per barrel under worst-case supply shock scenarios.
Source: Nairametrics
