New York, Apr 13: Oil prices rose in early market trading on Sunday after the US said it would blockade Iranian ports beginning Monday.The price of US crude oil rose 8 per cent to USD 104.24 a barrel and Brent crude oil, the international standard, rose 7 per cent to USD 102.29.Brent crude has swung dramatically during the Iran war, rising from roughly USD 70 per barrel before the war in late February to more than USD 119 at times. On Friday, ahead of the peace talks, Brent for June delivery fell 0.8 per cent to USD 95.20 per barrel.
Iran has been effectively controlling the Strait of Hormuz, a key waterway for global oil shipping.
US Central Command said the blockade would be “enforced impartially against vessels of all nations” entering or departing Iranian ports and coastal areas.It said it would still allow ships travelling between non-Iranian ports to transit the Strait of Hormuz.Around a fifth of the world’s traded oil typically flows through the Strait of Hormuz every day. Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran are all major exporters.
Traffic in the Strait has been limited even in the days since the ceasefire. Marine trackers say over 40 commercial ships have crossed since the start of the ceasefire.
