Crude oil prices surged higher at the start of the week as geopolitical tensions flared again following the US military action against Iran.
The surge came after peace talks between the two countries failed to reach an agreement over the weekend.
US crude oil futures for May delivery rose more than 8% to around $104.8 per barrel, while global benchmark Brent for June delivery rose 7.38% to $102.2 per barrel.
The rise reflected market concerns over global energy supply disruptions.
The US Central Command announced that restrictions would be imposed on all maritime traffic entering and leaving Iranian ports starting Monday. This measure applies to all ships regardless of nationality, but does not affect ships passing through non-Iranian ports.
At the same time, the US is also considering greater restrictions on the Strait of Hormuz, a strategic route that handles about 20% of global oil supplies. Any disruption in this route has the potential to have a major impact on the flow of world energy trade.
Tensions have been rising as the United States is reportedly prepared to take limited military action to break the deadlock in talks.
At the same time, Iran has insisted that control of the Strait of Hormuz remains in its hands, increasing the risk of market volatility.
Current data shows that oil tanker traffic through the Strait of Hormuz has declined significantly compared to before the conflict, from more than 100 ships a day to just a few ships in recent times.
This has caused major supply disruptions and contributed to a surge in oil prices.
The failure of the talks stems from a key issue related to Iran's commitment to developing nuclear weapons, which continues to be an obstacle to reaching an agreement. This situation keeps geopolitical tensions at a high level.
The oil market is currently in a sensitive phase with price movements driven by geopolitical risks and supply disruptions. The recovery of shipping flows in the Strait of Hormuz will be an important indicator of whether the pressure on oil prices can be reduced in the near future.
