Oil prices skyrocket due to US blockade on Iran

Oil prices rose above $100 a barrel on Monday, April 13, 2026, as the US Navy prepared to block shipping to and from Iran through the Strait of Hormuz.

The move is expected to limit Iranian oil exports, after the United States and Iran failed to reach a deal to end the ongoing war in the Middle East.

Brent crude futures rose $6.96, or 7.3%, to $102.16 a barrel at 4.30 GMT after settling 0.75% lower on Friday, while US West Texas Intermediate rose $8.12, or 8.4%, to $104.69 a barrel after a loss of 1.33% in the previous session.

“The market has now largely returned to pre-ceasefire conditions, except the US will now also block the remaining flows of up to 2 million barrels per day linked to Iran through the Strait of ⁠Hormuz,” said Saul Kavonic, head of energy research at MST Marquee.

US President Donald Trump said on Sunday the US Navy would begin blockading the Strait of Hormuz, raising the stakes after marathon talks with Iran failed to reach a deal to end the war, jeopardizing a fragile two-week ceasefire.

Trump added that oil and gasoline prices could remain high through November’s midterm elections, a rare acknowledgment of the potential political fallout from his decision to attack Iran six weeks ago.

a senior market analyst at Phillip Nova, Priyanka Sachdeva, told Reuters: “The threat of enforcement alone was enough to reassess the risk, demonstrating how vulnerable oil remains to geopolitical factors.

“The return to triple-digit prices, or the rising geopolitical risk premium that briefly subsided during previous ceasefire headlines, seems justified.”

U.S. Central Command said U.S. forces will begin implementing a blockade of all maritime traffic in and out of Iranian ports at 10 a.m. ET (2 p.m. GMT) on Monday.

“It will be enforced impartially against vessels of all nations entering or departing from Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and the Gulf of Oman,” CENTCOM said on X.

He added that US forces will not impede freedom of navigation for ships transiting the Strait of Hormuz to and from non-Iranian ports.

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