Crude Oil Prices Jump After U.S. Announced Strait of Hormuz Blockade, Lack of Ceasefire Deal
Crude oil prices surged on Monday after the U.S. announced it will start a blockade of the Strait of Hormuz, which followed a failure to reach a ceasefire deal with Iran.Brent crude at last look jumped 7.7% to US$102.54/barrel and West Texas Intermediate crude rose 8.2% to $104.44/barrel. This comes after U.S. President Donald Trump said the U.S. Navy is preparing to block ships to and from Iran via the Strait of Hormuz, which could restrict Iranian oil exports, Reuters said in a Monday report.Iran's Revolutionary Guard said any military vessels attempting to approach the strait would be considered a violation of the ceasefire and will be dealt with, the report said."The announced U.S. blockade marks an admission that the ceasefire's central premise - at least as interpreted by the U.S. - which was the reopening of the Strait, is untenable for now," Nordic bank SEB analyst Erik Meyersson was quoted as saying by Reuters.
