Oil Prices Rise After Announcement of Blockade on Iranian Ports

Darwin, 13 April: Global oil prices have increased following the U.S. announcement of a blockade on Iranian ports starting next Monday. This upward trend was observed right at the beginning of trading today.

In the U.S. market, the price of crude oil rose by 8 percent, reaching $104.24 per barrel.

Brent crude, which serves as the international benchmark, increased by 7 percent and is currently being sold at $102.29 per barrel. Before the Iran war began on February 28, oil prices were around $70 per barrel. Due to the war, prices at times exceeded $119 per barrel.

Earlier, on Friday, amid news of talks in Pakistan, oil prices for June delivery had dropped slightly to $95.20 per barrel.

How the U.S. Navy Will Enforce the Blockade

In a statement, the U.S. Central Command (CENTCOM) said it will implement a naval blockade on Iran starting April 13. According to the president’s announcement, from 10:00 a.m. that day, all maritime traffic to and from Iranian ports will be halted.

Earlier, Donald Trump had stated that after talks between U.S. and Iranian representatives in Islamabad ended without any results, the United States would move to blockade the Strait of Hormuz.

The CENTCOM statement added: “The blockade will be equally enforced on vessels of all countries traveling to and from Iranian ports in the Persian Gulf, the Gulf of Oman, and along Iran’s entire coastline.”