Oil prices surged sharply in early trading Sunday following a major geopolitical announcement from the United States. The U.S. government declared it would impose a naval blockade on Iranian ports, effective Monday, sending immediate shockwaves through global energy markets.
U.S. crude oil prices jumped 8 percent to $104.24 per barrel, while Brent crude, the international benchmark, rose 7 percent to $102.29. This spike reverses a recent decline; just days earlier, Brent crude for June delivery had settled at $95.20 per barrel.
The planned blockade, announced by U.S. Central Command, will be "enforced impartially against vessels of all nations" attempting to enter or leave Iranian ports and coastal areas. However, the command clarified that shipping traffic between non-Iranian ports would still be permitted to transit the strategic Strait of Hormuz.
Around a fifth of the world's traded oil typically flows through the Strait of Hormuz every day.
This narrow waterway is a critical chokepoint for global energy supplies, serving as a primary export route for major oil-producing nations including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran itself. Even prior to the blockade announcement, maritime traffic in the strait had been limited following a recent ceasefire in the region.
According to marine tracking data, more than 40 commercial vessels have navigated the strait since the ceasefire began. The price of Brent crude has experienced extreme volatility throughout the recent conflict, soaring from approximately $70 per barrel in late February to peaks exceeding $119 at various points.