Oil prices surge as US announces Iranian port blockade

Merve Aydogan

Oil prices rose sharply in early trading after the US announced that it would blockade Iranian ports starting Monday, dealing a fresh blow to hopes of stability in global energy markets.

The move marks a major escalation in the conflict that began when the US and Israel launched military operations against Iran on Feb. 28.

Brent crude, the international benchmark, rose 7% to $102.29 per barrel, while US benchmark West Texas Intermediate (WTI) crude gained 8% to $104.24 per barrel.

Oil prices have swung wildly since the conflict began. Brent crude was trading around $70 per barrel before the war started, later surging past $119 at its peak.

Markets showed cautious optimism on Friday as Brent slipped 0.8% to $95.20 per barrel ahead of peace talks between the US and Iran in Islamabad, Pakistan.

The blockade announcement, however, quickly erased those gains and pushed prices sharply higher once again.