Written by The Banking Post
Oil prices surged past $103 a barrel after US President Donald Trump announced a naval blockade targeting Iran, reigniting fears over global energy supply disruptions.
Brent crude, the international benchmark, jumped more than 8 per cent on Sunday, reclaiming the $100 mark after recent volatility driven by geopolitical tensions.
The spike followed Trump’s declaration that the US Navy would block vessels linked to Iran from entering or exiting the Strait of Hormuz—a critical route that carries about one-fifth of the world’s oil and natural gas.
However, the United States Central Command later clarified that the restriction would apply only to ships traveling to and from Iran, easing concerns over a full-scale shutdown of the waterway. The measure is set to take effect Monday morning (US time).
Oil markets have swung sharply in recent weeks. Prices had climbed above $119 a barrel during heightened conflict following US-Israeli strikes on Iran, before easing below $92 after a temporary ceasefire was announced.
Despite the truce—officially in place until April 22—shipping activity through the strait remains severely disrupted. Only 17 vessels crossed on Saturday, down from around 130 daily transits before the conflict, reflecting continued caution among shippers.
Tehran has allowed limited passage under strict vetting, but traffic remains a fraction of normal levels, tightening supply expectations and fuelling price volatility.
The renewed tensions also rattled financial markets. Asian equities opened lower, with Japan’s Nikkei 225 falling 0.9 per cent and South Korea’s KOSPI dropping more than 1 per cent.
US stock futures also weakened, with contracts linked to the S&P 500 down about 0.8 per cent, as investors braced for prolonged uncertainty in global energy and financial markets.
