Oil prices surged past the US$100 per barrel mark on April 13 following confirmation that the United States Navy is set to begin a maritime blockade of Iranian shipping routes through the Strait of Hormuz.
The move, aimed at curbing Iran’s oil exports after the latest round of negotiations between Washington and Tehran collapsed, has triggered renewed tension across global energy markets and heightened fears of supply disruption.
By 08:10 GMT, benchmark Brent crude futures were trading at US$102.23 per barrel, a gain of US$7.03 from the previous session, reversing a 0.75 per cent decline recorded on Friday.
US West Texas Intermediate rose by US$7.31 to US$103.88 per barrel, recovering from a 1.33 per cent loss at the end of last week.
The jump marked one of the sharpest single‑day rallies since early 2022, when geopolitical conflicts last sent shockwaves through the oil market.
The United States government confirmed that the blockade will begin at 14:00 GMT on Monday, focusing on the control of all maritime traffic entering and exiting Iranian ports.
According to defence officials, non‑Iranian shipments will still be permitted to pass through the Strait of Hormuz without obstruction, though analysts caution that even limited military operations in the area could severely disrupt tanker movements.
The decision follows a breakdown in fragile ceasefire arrangements that had lasted two weeks.
Iran’s Revolutionary Guards issued a statement warning that any foreign military activity near the Strait would be perceived as a violation of the truce and would prompt immediate retaliation.
The Strait of Hormuz remains one of the most critical arteries for global energy supply, with roughly one‑fifth of all internationally traded crude passing through its narrow waters each day.
Even brief interruptions have historically caused sharp fluctuations in prices.
Market participants reacted swiftly, as traders priced in the risk of escalating conflict.
Physical barrels of crude traded at steep premiums, with some grades nearing record highs around US$150 per barrel.
Refiners and shipping companies across Asia and Europe began reassessing their sourcing plans, anticipating potential delays or rerouting costs linked to the developing situation.
Shipping data from LSEG and Kpler, cited by Reuters, showed several tankers continuing activity within the Gulf region despite the rising risks.
The Pakistan‑flagged vessels Shalamar and Khairpur entered the Gulf on Sunday to load crude and refined products in the United Arab Emirates and Kuwait.
The Liberia‑flagged very large crude carrier Mombasa B was also positioned inside the Gulf, while the Malta‑flagged Agios Fanourios I, originally scheduled to load Iraqi Basra crude, reversed course and anchored near the Gulf of Oman.
Three supertankers managed to exit the Strait of Hormuz on Saturday, marking the first successful passage since the ceasefire was established earlier this month.
Energy analysts predict sustained volatility through the week, with markets weighing the scale and duration of the U.S. blockade against Iran’s potential response.
The geopolitical standoff underscores how fragile global energy security remains at a time when supply chains are still recovering from years of disruption.
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