Oil prices surge above $100 after peace talks between the United States and Iran failed to produce a breakthrough, while fresh blockade plans from US President Donald Trump added to market anxiety. The sharp move pushed crude higher in early Asian trading and also lifted the US dollar.
Shortly after trading opened on Monday, West Texas Intermediate for May delivery rose around 8% to $104.50 a barrel. Meanwhile, Brent crude for June delivery climbed 7% to $102.
The jump came after Trump said the US Navy would begin blockading the Strait of Hormuz following marathon talks with Iran that failed to secure a deal to end the war. The move also put a fragile two-week ceasefire under renewed strain. Asian markets reacted cautiously to the latest developments. South Korea’s Kospi fell 2% in early trade before trimming losses, while Japan’s Nikkei 225 slipped about 0.3%.
The broader mood across markets turned defensive. Last week, oil prices fell, and stocks rallied after Trump agreed to a two-week ceasefire reportedly mediated by Pakistan. However, that optimism faded quickly as Israel continued strikes in Lebanon and the Strait of Hormuz remained effectively closed. The US dollar also strengthened in a broad rally against most major peers. The US dollar index rose as much as 0.5% to 99.187, its highest level since April 7.
At the same time, the euro fell 0.5% to $1.1667, while the British pound dropped 0.6% to $1.3383. The Australian dollar lost 0.8% to $0.7014, and the New Zealand dollar slipped 0.7% to $0.5798. Analysts at Westpac said early and thin foreign exchange trading reflected a clear risk-off mood, with the US dollar benefiting from the market response
Strait of Hormuz blockade raises fresh concerns
The US Central Command said US forces would begin implementing a blockade of all maritime traffic entering and exiting Iranian ports at 10 am ET on Monday, which is 7 pm Pakistan Standard Time. That announcement has raised fresh concerns about energy supplies and regional stability, especially because the Strait of Hormuz is a critical route for global oil shipments.
Read: Iran Holds Firm on Strait of Hormuz Control in US Talks
The latest surge in crude and the stronger dollar show how quickly geopolitical tensions can shake global markets. For now, traders appear focused on whether the blockade will tighten supply risks further and whether diplomatic efforts can still prevent a wider escalation.
