By: Economy Middle east

Oil prices surged above $100 a barrel on Monday as the U.S. Navy prepared to block vessels from reaching Iran through the Strait of Hormuz, a move that threatens to curb Iranian oil exports after Washington and Tehran failed to agree on an end to the conflict.

Brent crude futures rose $6.95, or 7.30 percent, to $102.15 a barrel by 8:28 UAE time, after closing 0.75 percent lower on Friday.

U.S. West Texas Intermediate stood at $104.69 a barrel, up $8.41, or 8.12 percent, following a 1.33 percent drop in the prior session.

President Donald Trump said on Sunday that the U.S. Navy would begin blockading the Strait of Hormuz, ramping up pressure after prolonged talks with Iran failed to produce a deal to end the conflict and casting doubt over a fragile two‑week ceasefire.

He added that the price of oil and gasoline may remain elevated through November’s midterm elections, a rare public admission of the potential political consequences from his decision six weeks ago to launch attacks on Iran.

Enforcing port restrictions

U.S. Central Command stated that U.S. forces would start implementing the blockade of all maritime traffic entering and exiting Iranian ports at 10 a.m. ET (14:00 GMT) on Monday.

The blockade would be “enforced impartially against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman,” a CENTCOM statement on X said.

U.S. forces would not interfere with freedom of navigation for ships passing through the Strait of Hormuz to and from non‑Iranian ports, the statement added.

Iran’s Revolutionary Guards warned on Sunday that any military vessels attempting to approach the Strait of Hormuz would be treated as a violation of the two‑week U.S. ceasefire and met with harsh and decisive action.

Despite the standoff, three fully loaded supertankers crossed the Strait of Hormuz on Saturday, shipping data showed. They appeared to be the first vessels to leave the Gulf since the ceasefire agreement was reached the previous week.

Oil tankers are now avoiding the Strait of Hormuz ahead of the looming U.S. blockade on Iran, according to shipping data provided by LSEG.

On Sunday, Saudi Arabia announced it had restored full oil‑pumping capacity via the East‑West pipeline to around 7 million barrels per day, days after it assessed damage to its energy infrastructure from attacks during the Iran conflict.