Oil prices rise 4 percent as U.S. blockades Iranian ports
Brent crude futures rose to nearly 100 dollars after the U.S. military began a blockade of Iranian ports. The move follows the breakdown of weekend peace talks.
Oil prices surged on Monday as the United States military initiated a naval blockade of shipping lanes leaving Iran ports. This escalation followed the breakdown of weekend negotiations aimed at ending the ongoing conflict. Brent Crude Oil futures rose by $4.16, or 4.4%, to settle at $99.36 per barrel. Similarly, West Texas Oil crude increased by $2.51, or 2.6%, finishing the session at $99.08 per barrel.
The market remains highly volatile, a trend established since the joint military action by American and Israeli forces on February 28. While futures prices showed significant gains, they retreated from earlier session highs where Brent and WTI had climbed by more than $8 and $9 respectively. The six-week war has severely disrupted global energy supplies, particularly through the Strait of Hormuz, which handles approximately 20% of the world's oil and liquefied natural gas flows.
