Oil prices surged in early market trading following the US announcement of a blockade on Iranian ports. The US military confirmed the halt of all maritime traffic in and out of Iranian ports starting at 10 am ET (2 pm GMT) today.
US crude oil prices rose by eight percent to $104.24 per barrel, while Brent crude, the global benchmark, increased by seven percent to $102.29. Brent crude prices have experienced significant fluctuations due to the Iran conflict, jumping from around $70 per barrel before the war in late February to peaks exceeding $119 at various points.
Prior to peace talks on Friday, Brent for June delivery dropped by 0.8% to $95.20 per barrel. President Trump justified the blockade as a response to Iran’s failure to reopen the Strait of Hormuz, warning of military action against any Iranian aggression and interception of vessels paying transit tolls to Iran.
Mohammad Bagher Ghalibaf, the Iranian parliamentary speaker involved in negotiations in Islamabad, criticized Donald Trump for the blockade plans. In a post, Ghalibaf mocked the US strategy and warned of potential gasoline price spikes in Washington, D.C., due to the blockade.
In an earlier statement, Ghalibaf affirmed Iran’s stance of not surrendering to threats.
