Global oil prices surged sharply on Monday after peace talks between the United States and Iran ended without any breakthrough, raising fears of renewed escalation in the region. The US benchmark crude rose more than 8 per cent, crossing the $100 per barrel mark, while international Brent crude also recorded strong gains in early trading.
The spike came after US President Donald Trump ordered a naval blockade of Iranian ports following unsuccessful negotiations aimed at ending the conflict. According to US Central Command, American forces began implementing measures to restrict maritime traffic to and from Iran, a move that could significantly disrupt global energy supply routes.
Financial markets reacted cautiously to the developments. Asian stock markets slipped in early trading, with South Korea’s benchmark index dropping before recovering slightly, while Japan’s Nikkei also remained under pressure. Investors shifted towards safer assets, reflecting growing uncertainty over the geopolitical situation.
The US dollar strengthened in response, reaching its highest level in a week against major global currencies. The euro, British pound, and other currencies weakened as markets moved into a risk-averse mode amid rising tensions.
The latest developments come just days after a fragile ceasefire was announced following Pakistan-mediated talks, which had briefly eased market concerns. However, continued instability in the region and uncertainty surrounding key routes such as the Strait of Hormuz have once again heightened fears among global investors.
Analysts warn that if tensions continue to escalate, oil prices could rise further, increasing pressure on economies worldwide. The situation remains fluid, with markets closely watching for any signs of diplomatic progress or further military action.