Crude oil prices have once again surged above $100 per barrel on Monday following the collapse of ceasefire talks between Iran and the United States in Pakistan.
Brent crude, the primary international benchmark, rose by more than 8 per cent on Sunday to climb to $103 per barrel.
This was the first time the benchmark rose above the important $100 threshold since Tuesday, when it was trading at $111 per barrel.
Late on Sunday, Trump posted on Truth Social that the US Navy would block all ships from entering or exiting the Strait of Hormuz following the collapse of ceasefire talks between US and Iranian officials over the weekend.
Following the instructions, US Central Command (CENTCOM) said that it would only block ships travelling to and from Iran while traffic from other countries would carry on smoothly.
The command said the blockade measure would come into effect on Monday at 10 am Eastern Time (14:00 GMT). Since the beginning of the war in Iran, crude oil prices have fluctuated.
While Iran has effectively blocked the all-important trade route, the prices of energy have sent oil and LNG-dependent nations’ economies into chaos, especially the Asian economies.
After topping $119 last month, Brent fell below $92 per barrel last week after the US and Iran announced a two-week ceasefire following more than six weeks of war.
According to updated maritime intelligence figures shared by the Windward firm, the traffic in the Strait of Hormuz has come down significantly from 130 to 17 vessels a day.
Also read: Windfall tax on diesel hiked to ₹55.5/litre
Follow us
