Crude oil prices on international markets jumped above $100 per barrel on Monday morning, following the breakdown of talks between the leaders of the US and Iran, which concluded with the US announcing that it would now blockade the Strait of Hormuz.
According to oilprice.com, as of 10am (Cambodia time) on April 13, West Texas Intermediate (WTI) crude was priced at $104.9 per barrel, up 8.32% compared to April 12, while Brent crude stood at $102.2 per barrel, an increase of 7.01%.
This sharp rise in oil prices came after more than 20 hours of Pakistani-hosted ceasefire negotiations between US and Iranian leaders failed to produce a positive outcome.
In an unexpected twist, on Sunday, April 12, US President Donald Trump posted on Truth Social stating: “The US Navy will begin blocking all ships attempting to enter or exit through the Strait of Hormuz”.
The irony of the US announcing the blockade as a result of negotiations designed to open the strait struck a chord with many watchers, however it became clear that the American navy intends to intercept the few vessels which Iran has allowed to pass through its own blockade.
Oil prices dropped significantly on April 8, as Trump announced a two-week ceasefire to pave the way for negotiations.
At the time, WTI crude was priced at $96.51 per barrel, while Brent crude stood at $94.80.
Global oil prices have been rising steadily since the US, together with Israel, launched attacks on Iran on February 28. Prior to the outbreak of the conflict, WTI crude was priced at around $67 per barrel, while Brent crude stood at $72.