Oil prices surged above $102 a barrel on Monday as the US prepared to enforce a naval blockade on Iranian ports following failed talks with Tehran, raising fears of disrupted crude flows through the Strait of Hormuz. Brent and WTI both jumped nearly 8%, reflecting heightened geopolitical risk and concerns over tighter global supply.
The move has intensified tensions, with Iran warning of strong retaliation and oil tankers already avoiding the strait. Analysts flagged a potential convergence between physical and futures markets, while OPEC cut demand forecasts amid the conflict. Elevated prices could persist, with some physical crude already nearing $150 levels.
