Oil jumps more than 7% to above $102 ahead of U.S. blockade on Iran

Oil prices jumped back above US$100 a barrel as the U.S. Navy prepared to block ships to and from Iran via the Strait of Hormuz, raising the risk of a significant disruption to crude flows. The move could restrict Iranian oil exports after Washington and Tehran failed to reach a deal to end the war. The news is broadly risk-off and has potential market-wide implications for energy prices and shipping routes.

Analysis

Oil prices jumped back above US$100 a barrel as the U.S. Navy prepared to block ships to and from Iran via the Strait of Hormuz, raising the risk of a significant disruption to crude flows. The move could restrict Iranian oil exports after Washington and Tehran failed to reach a deal to end the war. The news is broadly risk-off and has potential market-wide implications for energy prices and shipping routes.