Oil prices jumped above $100 per barrel on Monday as tensions increased between the United States and Iran after peace talks broke down.
Brent crude rose to around $102, while US West Texas Intermediate (WTI) climbed above $103, both gaining more than 7% during the day.
The rise followed an announcement by Donald Trump, who said the US would begin blocking Iranian ports. The decision has created fears of supply disruption in global oil markets.
Key Trade Route Under Threat
Attention is now focused on the Strait of Hormuz, a critical route for global energy shipments.
A large portion of the world’s oil passes through this narrow waterway, making it highly sensitive to geopolitical tensions.
Global Concerns Increase
Iran criticized the US move and warned it may respond if restrictions continue. Meanwhile, oil exports from Iran are still ongoing, with much of the supply going to China.
Experts say the market is reacting to uncertainty, and prices could remain high if the situation does not improve.
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