Oil jumps 8% to above $100 as US prepares to block Strait of Hormuz

Oil prices jumped above $100 a barrel on Monday as the US Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments after ​the US and Iran https://www. reuters. com/world/iran/ failed to reach a deal to end ​the war.

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 market is now largely back to conditions before the ceasefire, except now the US will block the remaining up to 2 million barrels per day Iranian linked flows through the Strait of Hormuz as well," said Saul Kavonic, head of energy research at MST Marquee.

President Donald Trump https://www. reuters.

com/world/us/donald-trump/ said on Sunday the US Navy would start blockading nL1N40U07M 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.

He added that the price of oil and gasoline nL1N40V03P may remain high through November's ‌midterm elections, a rare acknowledgement of the potential political fallout from his decision to attack Iran six weeks ago.

US Central Command said US forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports at 10 a. m. ET (1400 GMT) on Monday.