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Oil Prices Soar 10% Past $100 as US Moves to Blockade Strait of Hormuz

International crude oil prices surged nearly 10%, pushing Brent crude above $103 per barrel, following a US Navy blockade of the Strait of Hormuz. The escalation marks a breakdown in the recent US-Iran ceasefire aimed at keeping the vital waterway open. President Donald Trump announced the move, citing maritime security concerns and warning the US would block all ships. The supply disruption fears immediately rattled global and domestic equity markets, which traded sharply lower.

Key Points: Crude Oil Surges 10% as US Blockades Strait of Hormuz

  • Brent crude hits $103.40
  • US Navy blockades key oil transit route
  • Iran-US ceasefire efforts break down
  • Domestic MCX crude futures jump 7.6%
  • Global equity markets tumble on risk aversion
2 min read

Crude oil prices surge nearly 10 pc to cross $100 as US moves to block Hormuz

Global oil prices surge past $100/barrel after US Navy blockades Strait of Hormuz, disrupting supplies and rattling equity markets.

"any and all ships trying to enter or leave the Strait - US President Donald Trump"

Mumbai, April 13

International crude oil prices surged on Monday, climbing nearly 10 per cent and crossing the $100 per barrel mark, following the US Navy's move to blockade the Strait of Hormuz amid stalled peace talks.

Brent crude futures jumped 8.61 per cent or $8 to hit an intraday high of $103.40. Similarly, US West Texas Intermediate (WTI) crude traded at $105.63, up 9.38 per cent or $9.

On the domestic front, crude oil futures (April 20 contract) on the Multi Commodity Exchange (MCX) were trading at Rs 9,850, up 7.61 per cent or Rs 697.

The sharp rise in oil prices came after US President Donald Trump announced the US Navy would begin blockading the Strait of Hormuz.

The US President said Iran had "failed to keep the waterway open" and warned that the US would block "any and all ships trying to enter or leave" the Strait, citing concerns over maritime security and potential disruption to global oil supplies.

Notably, the US and Iran had agreed to a two-week ceasefire on April 8, aimed at easing tensions and ensuring the reopening of the Strait of Hormuz, a key global oil transit route.

However, the latest escalation indicates a breakdown in those efforts, raising concerns over supply disruptions.

The Strait of Hormuz is a vital transit route for global crude shipments, and any disruption has immediate implications for supply chains and prices.

Meanwhile, domestic equity markets traded lower, with benchmark indices Sensex and Nifty plunging around 2 per cent in early trade amid rising global risk aversion.

In Asian markets, major indices traded in the red, with key indices -- the Nikkei, the Hang Seng, and the KOSPI -- declining over 1 per cent each.

- IANS

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Reader Comments

S
Sarah B
Watching from an international perspective, this US move seems incredibly destabilizing. Just when peace talks were making some headway. Global markets are reacting exactly as you'd expect. This volatility hurts economies everywhere, not just in India.
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Ananya R
Sensex down 2% already. My SIPs are taking a hit. This is why we need to be less dependent on imported oil. Faster push for renewables and electric vehicles is the only long-term solution for India's energy security. Jai Hind!
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Vikram M
The timing is terrible. Just as the summer travel season starts. Bus and train fares might go up, prices of everything from vegetables to LPG cylinders will feel the ripple effect. Brace yourselves for more inflation.
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David E
While I understand the geopolitical concerns, a blockade is a drastic measure. It directly impacts millions of lives in developing nations like India far more than it does in the West. The human cost of these decisions is often overlooked.
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Priya S
Our foreign policy needs to be more proactive in such situations. We have good relations with many Gulf countries. Can we not use that diplomacy to ensure a steady supply for ourselves and act as a mediator? Just a thought.

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