Oil jumps on U.S.-Iran talks failure, blockade threat

Oil prices surged after the collapse of U.S.-Iran talks and escalating tensions around the Strait of Hormuz.

June Brent crude futures rose 7.8% at the start of trading on April 13 to $102.6 per barrel, according to ICE Futures data.

U.S. President Donald Trump said Washington would begin a blockade of the Strait of Hormuz following failed negotiations with Iran. U.S. forces would also search for and detain vessels that had paid Iran for passage, he said.

U.S. Central Command said it would start blocking all maritime traffic entering and leaving Iranian ports on Monday at 10:00 a.m. New York time (1800 Baku time). Iran warned that any military vessels approaching the strait “under any pretext” would be considered in violation of the ceasefire.

Amrita Sen, head of market analysis at Energy Aspects, said the United States had until now allowed Iran to export oil and petroleum products and had even eased sanctions to help keep energy prices stable.

“But if a real blockade occurs, it would mean 1.5–1.7 million barrels per day are halted, on top of more than 10 million barrels per day already missing from the market,” she said.

Analysts cited by the Financial Times warned that oil prices could rise sharply, with Rystad Energy’s Jorge Leon saying prices could exceed $110 per barrel when trading resumes.