Oil rises above $100 per barrel amid announced U.S. naval blockade of Iran
This was reported by Reuters, Ukrinform says.
Brent crude futures rosr by $6.96, or 7.3%, to $102.16 per barrel. U.S. West Texas Intermediate crude rose by $8.12, or 8.4%, to $104.69 per barrel.
After negotiations with Iran failed to produce an agreement to end the war, U.S. President Donald Trump said on Sunday that the U.S. Navy would start blocking the Strait of Hormuz. He also acknowledged that oil and gasoline prices could remain high through November's midterm elections.
"The market is now largely back to conditions before the ceasefire, except now the U.S. will block the remaining up to 2 million barrels per day Iranian-linked flows through the Strait of Hormuz as well," said Saul Kavonic, head of energy research at MST Marquee.
U.S. Central Command stated that American forces would begin blocking all maritime traffic to and from Iranian ports starting Monday, though they would not interfere with vessels transiting to ports in other countries.
IG market analyst Tony Sycamore said the move would effectively shut off Iranian oil supplies.
As reported earlier, U.S. President Donald Trump said on Sunday that the U.S. Navy would start blocking ships attempting to enter or exit the Strait of Hormuz.
