Oil prices have risen sharply in early trading after the US announced that it would blockade Iranian ports starting Monday, dealing a fresh blow to hopes of stability in global energy markets.
The move marks a major escalation in the conflict that began when the US and Israel launched a war against Iran on 28 February.
Brent crude, the international benchmark, has risen about 7 percent per barrel, while US benchmark West Texas Intermediate (WTI) crude has surged 8 percent per barrel.
Oil prices have swung wildly since the conflict began.
Brent crude was trading around $70 per barrel before the war started, later surging past $119 at its peak.
Markets showed cautious optimism on Friday as Brent slipped around one percent per barrel ahead of peace talks between the US and Iran in Islamabad, Pakistan.
The blockade announcement, however, quickly erased those gains and pushed prices sharply higher once again.
US Central Command says its forces will begin implementing a blockade of all maritime traffic entering and exiting Iranian ports from April 13 at 10 am ET (1400 GMT) in accordance with Trump’s proclamation.
The blockade will be enforced impartially against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Gulf and Gulf of Oman, the command said.
CENTCOM said its forces will not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports.
It added that additional information will be issued to commercial mariners through a formal notice ahead of the start of the blockade.
