Oil prices have surged back above $100 per barrel after Donald Trump announced a blockade of the Strait of Hormuz, sharply escalating tensions in global energy markets.
Brent crude jumped as much as 8% early Monday to a high of $104, having closed at $94 on Friday. The spike follows the collapse of U.S.–Iran peace talks in Islamabad, with Washington accusing Tehran of refusing to compromise on its nuclear programme.
The geopolitical shock has weighed on broader markets. U.S. futures declined overnight, with S&P 500 futures down as much as 1.1% and Nasdaq futures falling 1.2%, while Asian equities also traded lower across the board.
In a post on Truth Social, Trump said the U.S. Navy would begin “blockading any and all ships” attempting to enter or leave the Strait of Hormuz, a critical chokepoint that handles around 20% of global oil and gas flows.
The move follows Iranian threats to impose transit tolls on vessels using the route, which Trump described as “world extortion.” A full blockade of Iranian exports would effectively remove roughly 4% of global oil supply, significantly tightening the market.
U.S. military officials later clarified that vessels departing Iranian ports would be halted from Monday afternoon, reinforcing expectations of near-term disruption. The latest rally comes after oil prices had eased last week amid a fragile ceasefire, though only limited tanker traffic has since resumed through the region.
