Oil prices surged above $100 a barrel on Sunday after diplomatic efforts between the United States and Iran broke down, raising fears of a major disruption to global energy supplies.
U.S. crude futures for May delivery jumped nearly 8% to around $104.20 per barrel, while international benchmark Brent crude for June rose about 7% to $101.86, reflecting heightened geopolitical risk in the Middle East.
The sharp rise followed reports that the United States is preparing to enforce maritime restrictions targeting Iranian ports after peace negotiations failed over the weekend. The U.S. Central Command (CENTCOM) said it would begin blocking vessels entering or leaving Iranian ports, a move that could significantly affect regional oil exports.
In a statement, CENTCOM said the measures would apply to all vessels regardless of nationality accessing Iranian ports along the Arabian Gulf and Gulf of Oman, while allowing transit to non-Iranian destinations.
U.S. President Donald Trump also warned of broader action, including potential restrictions in the Strait of Hormuz, a key shipping route through which roughly one-fifth of global oil supply passes under normal conditions.
Analysts said the threat to the Strait of Hormuz, a critical artery for energy exports from major producers, has sharply increased market volatility. Tanker traffic through the waterway has already declined amid rising security concerns, intensifying fears of supply shortages.
The latest developments come after weeks of escalating tensions and failed diplomatic efforts aimed at easing the conflict. Market participants are closely watching for further military or economic actions that could impact oil flows.
Energy analysts said any sustained disruption in the region could drive prices higher, particularly if shipping routes remain constrained or if hostilities escalate further.
Oil markets have historically reacted strongly to geopolitical shocks in the Middle East, and the current situation has reinforced concerns about supply stability at a time of fragile global economic recovery.