Oil prices spiked past $100 per barrel after President Donald Trump imposed a blockade of the Strait of Hormuz in response to failed peace talks between Iran and the US.
Brent crude oil futures reached $102 per barrel on Sunday evening, up $7 from the previous close price. West Texas Intermediate also rose $7 to reach $104 a barrel.
Oil prices have skyrocketed globally since the US and Israel’s war on Iran began in February. Iran retaliated by effectively closing traffic through the Strait of Hormuz. Around 20% of the world’s oil supply and liquefied natural gas passes through the waterway off Iran’s coast.
Major oil hubs across the Middle East have also been damaged amid the ongoing military conflict, further compounding the oil supply chain. The fallout is being felt globally, prompting some countries to shorten workweeks and implement other energy-saving tactics. The national average price of gas surpassed $4 in the US in late March.
Trump agreed to a two-week ceasefire on April 7, dependent on Iran immediately reopening the Strait of Hormuz. However, as the war approaches its seventh week, there is no end in sight.
US Vice President JD Vance traveled to Pakistan on Saturday to engage in peace talks with Iran. After nearly 24 hours, though, the two countries failed to reach an agreement.
In response, Trump said the US will enact a blockade of the Strait of Hormuz in a Truth Social post on Sunday.
“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump wrote.
