Global oil prices surged past $103 per barrel on Monday after the United States announced a naval blockade targeting Iranian ports, triggering fresh concerns over supply disruptions in the energy market.
Benchmark Brent crude jumped above $102 per barrel, while US West Texas Intermediate (WTI) climbed to around $104, marking gains of more than 7% in a single session.
The sharp rise followed the announcement by US authorities to enforce a maritime blockade on vessels entering or exiting Iranian ports, escalating tensions in the oil-rich Middle East and raising fears of reduced crude flows through the strategically vital Strait of Hormuz.
Analysts say the move could disrupt millions of barrels of oil per day, as the strait handles nearly a fifth of global oil shipments, making it one of the world’s most critical energy corridors.
Market sentiment has been further rattled by the breakdown of US-Iran talks and the risk of wider conflict, with investors pricing in a geopolitical risk premium amid uncertainty over shipping security and regional stability.
Shipping activity in the Gulf has already shown signs of disruption, with some tankers reportedly avoiding the area ahead of the blockade, adding to supply concerns and market volatility.
Energy experts warn that if tensions persist or escalate further, oil prices could remain elevated, potentially fuelling inflation and impacting global economic growth.