By Scott DiSavino NEW YORK, April 13 (Reuters) - Oil prices jumped about 6% to more than $100 a barrel on Monday after the U.S. military said it will blockade ships leaving Iran's ports nL6N40V09S,
Oil prices jump 4% on US blockade of Iran after talks break down
US Blockade and Oil Market Volatility
By Scott DiSavino
NEW YORK, April 13 (Reuters) - Oil prices climbed about 4% on Monday after the U.S. military began a blockade nL6N40V09S of ships leaving Iran's ports, drawing threatened retaliation from Tehran against its Gulf neighbors after weekend talks on ending the Iran war https://www.reuters.com/world/iran/ broke down.
Market Reaction and Price Movements
Futures finished the day off earlier highs, in a continuation of the volatility that has been a hallmark of oil trading since the U.S. and Israel jointly struck Iran on Feb. 28, kicking off a war that has now lasted more than six weeks.
While prices in cash markets https://www.reuters.com/business/energy/physical-oil-prices-hit-record-highs-near-150-barrel-hormuz-crisis-worsens-2026-04-07/ continue to surge, futures traders have been more guarded due to U.S. President Donald Trump's https://www.reuters.com/world/us/donald-trump/ unpredictable statements, which have vacillated from threats to expectations of a swift deal to end the conflict.
Brent futures rose $4.16, or 4.4%, to settle at $99.36, while U.S. West Texas Intermediate (WTI) crude rose $2.51, or 2.6%, to settle at $99.08. Earlier in the trading session, Brent was up more than $8 a barrel and WTI was up more than $9.
Impact on Global Oil and Gas Supplies
The war has resulted in the largest-ever disruption of global oil and gas supplies due to Iran's interruption of traffic through the Strait of Hormuz, which handles about 20% of global oil and liquefied natural gas flows.
Trump on Monday said 34 ships had passed through the strait on Sunday, a figure Reuters could not verify. Normally, more than 100 vessels transit the strait daily.
Inflation and Economic Impact
Rising Costs for Consumers
INFLATION-HIT GLOBE
The rising costs are hitting consumers' wallets worldwide. In the United States, drivers are cutting back https://www.reuters.com/business/energy/boston-denver-us-drivers-cut-back-iran-war-pushes-fuel-costs-higher-2026-04-11/ as gasoline and diesel prices are at their highest since the summer of 2022, following Russia's invasion of Ukraine.
International Responses and Policy Measures
Saudi Arabia said crude oil sales to China nL1N40W081 were set to fall in May, while European Commission nL8N40W0Q2 President Ursula von der Leyen said member states must coordinate on energy prices amid a 22 billion euro ($25.70 billion) increase in fossil fuel bills since the start of the war.
More countries have announced emergency support measures nL1N40W0K8 to combat rising energy costs, while the Organization of the Petroleum Exporting Countries lowered its forecast https://www.reuters.com/business/energy/opec-lowers-second-quarter-global-oil-demand-forecast-iran-war-2026-04-13/ for world oil demand in the second quarter by 500,000 barrels per day.
On Monday, the head of the International Energy Agency nL1N40W0TE, Fatih Birol, said member countries could release more barrels from reserves, though he hoped it would not be necessary.
Spot Crude Market and Geopolitical Tensions
Record Highs in Physical Crude Prices
SPOT CRUDE AT RECORDS
In the spot market, prices for physical crude for immediate delivery nL6N40W0KB to Europe traded at record highs of around $150 a barrel.
Blockade Threats and International Stance
"(If) Trump does indeed back his blockade threat with actual boats, a convergence between the paper and physical markets may soon come," said Helima Croft, an analyst at RBC Capital Markets.
Trump warned that any Iranian "fast-attack" ships nL6N40W0W0 that go near a U.S. maritime blockade nL1N40W0DH would be eliminated. NATO allies nL1N40W0J7, however, said they would not get involved in Trump's blockade plan, proposing instead to intervene only once fighting ends.
Ceasefire and Ongoing Negotiations
"It has been days since Iran attacked its neighbors, and the U.S. and Israel have not attacked Iran. There may be a light at the end of the tunnel," Bob Yawger, director of energy futures at Mizuho, said in a note. "For now, the ceasefire holds, and the two sides are apparently still talking."
(Additional reporting by Scott DiSavino in New York, Ahmad Ghaddar in London and Florence Tan and Jeslyn Lerh in Singapore; Editing by Kirsten Donovan, David Goodman, Paul Simao and Bill Berkrot)
