Oil prices have surged past $100 per barrel after the U.S. announced a naval blockade of Iranian ports in the Strait of Hormuz, escalating tensions in West Asia and prompting Iran’s Speaker Mohammad Bagher Ghalibaf to mock Washington over rising fuel costs. The move is expected to strain global energy supplies, with China and India among the most affected nations.
The U.S. Central Command (CENTCOM) confirmed late Sunday that its Navy would begin blocking ships entering or leaving Iranian ports through the Strait of Hormuz starting Monday at 10 a.m. ET (7:30 p.m. IST). The blockade will apply to all vessels linked to Iranian ports in the Arabian Gulf and Gulf of Oman but will not restrict ships trading with non-Iranian ports. The announcement followed failed peace talks in Islamabad, mediated by Pakistan, and immediately sent shockwaves through global oil markets.
Brent crude futures jumped 7.3% to $102.16 per barrel, while U.S. West Texas Intermediate (WTI) rose 8.4% to $104.69, marking one of the sharpest single-day increases in months. President Donald Trump warned that the blockade could have a “long-lasting impact,” keeping oil and gasoline prices elevated through the upcoming U.S. midterm elections. Analysts say the move could trigger further volatility, especially if Iran retaliates militarily or disrupts shipping lanes.
Iranian Speaker Mohammad Bagher Ghalibaf responded with sarcasm, posting an image of rising gas prices near the White House and writing, “Enjoy the current pump figures. With the so-called ‘blockade,’ you’ll soon be nostalgic for $4–$5 gas.” His remarks came as Iran’s Revolutionary Guards vowed to treat any foreign military vessel approaching the Strait as a violation of the ceasefire, warning of “harsh and decisive” consequences.
Despite the looming blockade, shipping data showed three fully loaded supertankers passing through the Strait on Saturday—the first since last week’s ceasefire deal. However, experts caution that if the blockade is fully enforced, up to 1.5 million barrels per day of Iranian oil exports could be cut off, tightening global supply and pushing prices even higher.
The U.S. move marks a major escalation in its standoff with Iran and indirectly targets China, which buys over 90% of Iran’s crude exports. As energy markets brace for disruption, the Hormuz blockade underscores how geopolitical tensions can ripple across economies worldwide, threatening to reshape global oil trade and inflation trends in the months ahead.