Crude oil prices jump sharply after US announces plans to block Iranian ports

Crude oil prices jumped above $100 a barrel on April 13 as the U.S. Navy prepared to block ships from transiting through the Strait of Hormuz to Iran. The move could significantly limit Iranian crude oil exports after Washington and Tehran failed to reach an agreement to end the war. This was reported by Reuters.

Brent crude futures rose $6.71, or 7.05%, to $101.91 a barrel by 01:04 GMT, after falling 0.75% in earlier trading on Friday.

U.S. West Texas Intermediate crude rose $7.59, or 7.86%, to $104.16 a barrel after falling 1.33% in the previous session.

“The market is now largely back to pre-ceasefire conditions, except that the U.S. will now also block the remaining 2 million barrels per day related to Iran,” said Sol Kavonik, head of energy research at MST Marquee.

IG market analyst Tony Sycamore added that such a move would effectively cut off the flow of Iranian crude oil and force Tehran’s allies and customers to exert the necessary pressure to reopen the waterway.

As reported, the U.S. Central Command announced the beginning of a naval blockade of shipping related to Iranian ports. According to the U.S. military, the restrictions will take effect on April 13 at 10:00 a.m. Eastern Time and will be implemented in accordance with the presidential proclamation.

The command noted that the measures will apply to all vessels entering or leaving Iranian ports, regardless of their country of origin. We are talking about Iranian ports in the Arabian and Oman Gulfs.

Tags: Iran, prices