Oil Prices Surge as US Warns of Iran Port Blockade

Oil prices climbed sharply in early trading on Sunday after the United States signalled it would enforce a blockade of Iranian ports from Monday.

US crude jumped 8% to $104.24 a barrel, while Brent crude, the global benchmark, rose 7% to $102.29.

Prices have been highly volatile amid the Iran conflict. Brent surged from around $70 per barrel before the fighting in late February to peaks above $119, before easing slightly. On Friday, ahead of renewed peace talks, Brent for June delivery slipped 0.8% to $95.20.

The Strait of Hormuz remains central to the crisis, with Iran maintaining effective control over the vital shipping route.

S Central Command said the blockade would be enforced impartially on vessels of all nations entering or leaving Iranian ports and coastal areas, including those along the Persian Gulf and Gulf of Oman. However, ships travelling between non-Iranian ports will still be allowed to pass through the strait.

Roughly one-fifth of the world’s traded oil moves through the Strait of Hormuz each day, making it one of the most critical chokepoints in global energy supply. Major exporters in the region include Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran.

Despite a ceasefire, traffic through the strait remains limited. Marine tracking data shows more than 40 commercial vessels have crossed since the truce began.

Claudio Galimberti, chief economist at Rystad Energy, said the move is likely to push prices higher, though it could also influence ongoing diplomatic efforts