US Oil Benchmark Jumps 8%, Surpasses $100 After Failed US-Iran Talks
TOKYO: The US oil benchmark rose above $100 per barrel on Monday after no progress was made in peace talks between the US and Iran and US President Donald Trump ordered a blockade of Iranian ports.
Shortly after trading began, a barrel of West Texas Intermediate (WTI) for May delivery rose nearly 8 percent to $104.50, while international benchmark Brent for June delivery rose 7 percent to $102.
In early trading in Asia, South Korea’s benchmark Kospi index fell 2 percent, then recovered slightly, while Japan’s Nikkei index fell 0.3 percent.
Last week, oil prices fell and stocks rose after Trump agreed to a two-week ceasefire brokered by Pakistan, although his weakness quickly became apparent as Israel continued to attack Lebanon and the Strait of Hormuz remained effectively closed.
Negotiations in Islamabad on a long-term agreement led by US Vice President JD Vance and Iran’s parliament speaker failed to result in a deal, with both sides expressing pessimism.
Trump later announced that he had ordered his own blockade of the Strait of Hormuz; The US military later said it would start on Monday and apply only to ships heading to or arriving from Iranian ports.
Markets have been in turmoil since the war began on February 28, when Iran effectively closed the Strait of Hormuz, through which a fifth of global oil and gas normally flows.
