Oil rises above $102 per barrel, what experts are warning about

Oil prices climbed back above $100 per barrel, while Asian energy markets opened higher on Monday after talks between the United States and Iran failed to reach a new agreement and Donald Trump announced that he would block Iranian ports.

The international Brent crude benchmark rose by 7.3% to $102.30 (£76.32), while U.S. West Texas Intermediate crude increased by 8.7% to $104.94. The failure of the weekend negotiations has raised concerns that the global energy crisis will deepen.

It is recalled that last Wednesday, oil prices had dropped significantly below $100 following a Washington–Tehran agreement on a conditional two-week ceasefire, which also included reopening the Strait of Hormuz.

The straits, through which about one-fifth of the world’s energy shipments pass, have become a key flashpoint in the conflict with Iran, after Tehran responded to U.S.-Israel strikes with threats against ships attempting to pass through them.

Shipping has largely been halted since the start of the conflict on February 28, although some countries, including India and Malaysia, have secured safe passage for their vessels. The disruption has led to a rise in global energy prices.

U.S.-Iran talks were being closely watched for signs that disruptions to oil shipments through the Strait of Hormuz could soon be contained, said economist Chua Yeow Hwee of Nanyang University in Singapore.

“Oil prices are likely to remain high, as expectations now depend on whether the blockade is fully enforced, whether shipping disruptions will be prolonged, and whether diplomacy will resume,” he said.

Major stock indices in Asia recorded declines in Monday morning trading.

Japan’s Nikkei 225 fell by 1%, while South Korea’s Kospi dropped by 0.8%.

Asian economies are particularly vulnerable to developments, as they rely heavily on Middle Eastern oil.

U.S. stock futures also pointed to a lower opening for Wall Street.

Futures are agreements to buy or sell an asset at a predetermined price at a specified time in the future and are used as an indicator of market direction.

Energy prices and financial markets have fluctuated sharply in recent weeks as investors react to developments in the conflict.

Brent crude had fallen to nearly $90 on April 8 following a ceasefire agreement that also led to the reopening of the Strait of Hormuz. Since then, prices have remained volatile as doubts grow over the duration of the ceasefire and Israeli strikes in Lebanon continue.

Trump said in a post on Truth Social on Sunday that the U.S. would begin “BLOCKING every ship attempting to enter or leave the Strait of Hormuz.” CENTCOM later announced that the maritime blockade to and from Iranian ports would take effect at 10:00 a.m. Eastern Time (14:00 GMT) on Monday.

It said the measure would be applied “non-discriminatorily to vessels of all countries entering or leaving Iranian ports and coastal areas.” CENTCOM also noted that ships “will not be impeded” from transiting the Strait of Hormuz when they are “heading to and from non-Iranian ports.”

Iranian Parliament Speaker Mohammad Bagher Ghalibaf, who led negotiations for Tehran in Pakistan, said the country “will not submit to any threat,” according to local media.

Meanwhile, Iran’s Revolutionary Guard Navy warned that any military vessel approaching the Strait to enforce the blockade would be considered a violation of the ceasefire between Washington and Tehran and “will be dealt with harshly.”

“KORÇA BOOM”