Oil prices jump more than 10% after Donald Trump orders a naval blockade of the Strait of Hormuz following the collapse of U.S.-Iran peace talks. The move triggers immediate concerns over global energy supply, as the waterway handles roughly 20% of the world’s seaborne oil trade.
Brent crude and U.S. West Texas Intermediate both surge above $100 per barrel, reflecting fears of significant supply disruptions. Tankers begin avoiding the region, and shipping activity shows early signs of dislocation as market participants reassess risk exposure.
The blockade is aimed at restricting Iranian oil exports and follows the breakdown of diplomatic negotiations. Analysts warn that prolonged disruption in Hormuz could lead to one of the largest energy supply shocks in recent history, with potential spillover effects on inflation, global growth, and financial markets.
The surge in oil prices underscores the market’s sensitivity to geopolitical events, particularly those affecting critical infrastructure. Traders expect continued volatility as the situation evolves and supply risks remain elevated.
