Investing.com– Oil prices rose sharply in early Asian trade on Monday, surging back above $100 a barrel after U.S. President Donald Trump said the navy will begin blockading the Strait of Hormuz following failed ceasefire talks with Iran.
Brent oil futures jumped 8% to $102.93 a barrel by 19:11 ET (23:11 GMT).
The U.S. military will begin enforcing a blockade of all maritime traffic entering and leaving Iranian ports from 10:00 ET (14:00 GMT) on Monday, Central Command said, after Trump ordered a blockade of Hormuz.
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This came after the U.S. and Iran failed to reach a consensus during ceasefire talks held in Pakistan over the weekend. Iran’s nuclear activities, the reopening of Hormuz, and an end to Tehran’s support for proxy groups, including Lebanon’s Hezbollah, were key points of contention.
Vice President JD Vance, who led the U.S. delegation, left Pakistan early Sunday after 21 hours of negotiations failed to yield an agreement.
Continued U.S.-Iran hostilities, coupled with a complete blockade of Hormuz, pointed to sustained supply disruptions in global oil markets. Iran had effectively blocked Hormuz since the start of the conflict in late-February, cutting off roughly 20% of the world’s oil supplies.
Iran said it had no plans for future nuclear talks with the United States. But the Wall Street Journal reported that Middle Eastern governments were attempting to broker more ceasefire talks between Washington and Tehran in the coming days.