Oil prices breach $100 after Trump’s statement over blockage of Strait of Hormuz

The oil prices reacted sharply to the United States (US) President Donald Trump’s statement over the blockage of Strait of Hormuz jumping above $100 a barrel on Monday.

Reportedly, the US Navy prepared the blockade that could restrict Iranian oil shipments after the US and Iran failed to reach a deal to end the war.

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At Monday morning, the Brent crude futures rose $7.60, or 7.98 per cent, to $102.80 a barrel by 2310 GMT after settling 0.75 per cent ‌lower on Friday.

US West Texas Intermediate was at $104.88 a barrel, up $8.31, or 8.61 per cent, following a 1.33 per cent loss in the previous session.

The brent crude has swung during the Iran war, rising from roughly $70 per barrel before the war in late February to more than $119 at times.

Donald Trump on Sunday had said the US Navy would start blockading the Strait of Hormuz, raising the stakes after marathon talks with Iran failed to reach a deal to end the war, jeopardising a fragile two-week ceasefire.

Reacting to Trump’s statement, Iran’s Revolutionary Guards said that any military vessels attempting to approach the Strait of Hormuz would be considered a violation of the two-week US ceasefire and ‌be dealt with harshly and decisively.

The Indian rupee also faced the global pressure as on Monday start, the currency was at 93.28 declining 55 paise from Friday’s closing value of 92.73/$, following a two-week relief rally.

Shipping activity has remained limited in recent days. Marine tracking data shows that more than 40 commercial vessels have crossed the route since the ceasefire began, according to AP.