US EditionOil prices climb and global markets decline as US prepares for blockade of Iran's ports
Oil prices rose more than 7% as U.S. forces prepared to stop maritime traffic to and from Iranian ports, disrupting global shipping.
- On Monday, President Donald Trump announced a blockade of all Iranian ports following the collapse of 21 hours of ceasefire talks, pushing oil prices back above $100 a barrel.
- The planned blockade targets the Strait of Hormuz to prevent Iran from selling oil, threatening global supplies through the narrow waterway that has seen stalled traffic since late February.
- Benchmark U.S. crude jumped nearly 8% to $104.26 a barrel, while the Revolutionary Guards threatened that "no port in the region will be safe" in response to the blockade.
- Stock markets fell worldwide as investors weighed geopolitical uncertainty, while major U.S. banks including Goldman Sachs prepare to report quarterly earnings later this week.
- Analysts expect global trading to remain turbulent, as Brian Jacobsen, chief economic strategist at Annex Wealth Management, cautioned that "much will depend on the details of the blockade.
234 Articles
234 Articles
Daily Journal
US blockade of Iran ports threatens already crippled oil supply
Washington's decision to blockade Iranian ports in the Strait of Hormuz is sending tremors through global energy markets, raising fears of a fresh oil shock by threatening supplies to Asia.
US President Donald Trump's decision to block shipping traffic in the Strait of Hormuz, similar to Iran, should increase US oil exports, but also raise fuel prices at the country's own gas stations, wrote the business newspaper The Wall Street Journal (WSJ).
Oil prices resumed their escalation and global markets dropped mostly on Monday, as the U.S. military prepared to block traffic to and from Iranian ports and the Strait of Ormuz, where most of the shipping has been paralysed by Iran since the beginning of the war.
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