Fez– Oil prices sharply higher on Monday, rising back above the $100 per barrel threshold as tensions between the United States and Iran escalated, renewing concerns over global supply.
The international benchmark Brent crude gained more than 7% to trade just above $102 a barrel, while West Texas Intermediate climbed to nearly $104.
The increase reverses last week’s decline, when prices briefly slipped below $100 amid short-lived optimism over a potential diplomatic breakthrough.
Markets turned quickly after US President Donald Trump announced a blockade targeting Iranian ports, following the failure of talks between Washington and Tehran.
The move has intensified fears of disruption in a region that is central to global energy flows.
At the heart of the risk is the Strait of Hormuz, one of the world’s most critical oil transit routes, through which around 20% of global supply passes.
Any restriction to shipping in this narrow corridor tends to have an immediate and significant impact on prices.
Oil flows through the region have already been under pressure in recent weeks, with shipping activity slowing since the start of the war.
While Iranian exports have continued, largely directed toward Asian buyers, the broader market is increasingly pricing in the possibility of tighter supply if disruptions expand.
Analysts say the latest price surge reflects both current constraints and growing uncertainty. Traders remain cautious, balancing signs that some shipments are still moving against the risk of a wider interruption if the situation deteriorates further.
The outlook now hinges on how the blockade is enforced and whether diplomatic channels reopen.
For the moment, the risk premium in oil markets is rising, keeping prices elevated and leaving the door open for further gains if tensions persist.
Beyond crude oil, ongoing war in the Middle East could also affect the flow of other key commodities transported through the same route, adding to broader pressure on global trade and costs.
In the near term, oil markets are expected to remain volatile, with prices closely tied to developments on the geopolitical front rather than underlying demand.
