Crude oil prices jumped significantly in early Asian trading on Monday, crossing the $100 per barrel mark as geopolitical tensions in the Middle East intensified.
The sharp rally comes amid growing concerns over supply disruptions following the announcement of a naval blockade in the Strait of Hormuz, a critical artery for global oil shipments.
Brent crude futures rose to around $101.93 per barrel, gaining over 7%, while US West Texas Intermediate (WTI) crude surged to $104.47, up more than 8% in early trade.
Both benchmarks recorded strong intraday gains, with Brent touching highs near $103.88 and WTI reaching $105.62.
Oil markets reacted sharply after the United States announced it would begin blockading maritime traffic linked to Iranian ports following failed ceasefire talks with Iran.
The Strait of Hormuz, a vital chokepoint for global energy supply, handles nearly 20% of the world’s oil shipments. Any disruption in this region has immediate and significant implications for global oil markets.
The blockade follows unsuccessful negotiations between the United States and Iran over the weekend, where key issues such as Iran’s nuclear programme and regional influence remained unresolved.
Geopolitical risks intensified further as both sides adopted firm positions. The United States signalled strict enforcement of the blockade, while Iran warned against foreign military presence near the strategic waterway.
The situation has raised concerns of prolonged conflict, with markets pricing in the possibility of extended supply disruptions.
Adding to the uncertainty, reports suggest that diplomatic efforts may continue, with Middle Eastern countries attempting to broker fresh ceasefire talks in the coming days.
Shipping activity has already begun to reflect the heightened risk, with several oil tankers steering clear of the Strait of Hormuz ahead of the blockade’s enforcement.
Some vessels attempting to pass through the region have altered their routes or halted movement, indicating rising caution among global shipping operators.
This disruption in tanker movement is expected to further tighten supply conditions and support elevated oil prices in the near term.
With geopolitical tensions escalating and a key oil transit route under threat, crude oil markets are likely to remain highly volatile.
Investors will closely monitor further developments in US-Iran relations, as well as any updates on diplomatic negotiations that could ease supply concerns.
Crude oil prices have surged sharply amid rising geopolitical tensions and fears of supply disruptions in the Strait of Hormuz. With tanker movements already impacted and uncertainty surrounding future negotiations, the market is expected to remain volatile as traders assess the evolving global energy landscape.
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Published on: Apr 13, 2026, 8:12 AM IST
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