Oil prices surged by more than 7% on Monday, climbing back above $100 a barrel following escalating geopolitical tensions after US President Donald Trump ordered a blockade of Iranian ports amid the breakdown of peace talks between Washington and Tehran.
Brent crude rose to $102.30 per barrel, while West Texas Intermediate (WTI) climbed 8.7% to $104.94, reflecting renewed market fears over global supply disruptions. The rally reversed last week’s decline, when prices had fallen below $100 after a temporary ceasefire agreement and discussions to reopen the Strait of Hormuz.
The Strait of Hormuz, a critical shipping route responsible for about a fifth of global energy shipments, has become a key flashpoint in the ongoing conflict. Tensions intensified after Iran threatened to target vessels passing through the waterway, while shipping activity has reportedly slowed significantly since the outbreak of hostilities between the US, Israel, and Iran at the end of February.
Meanwhile, Washington has ordered restrictions on vessels entering and leaving Iranian ports in the region, though officials clarified that the measures do not apply to ships transiting the Strait to or from non-Iranian ports. Iran has condemned the move as illegal and described it as an act of “piracy,” while China has urged all parties to exercise restraint to protect global energy security and ensure the uninterrupted flow of trade.