Global oil prices surged above $100 a barrel on Monday as the United States prepared to implement a full naval blockade of the Strait of Hormuz, marking a dramatic escalation after US-Iran talks collapsed over Tehran’s refusal to abandon its nuclear programme.
Brent crude futures jumped $7.60 — or 7.98 per cent — to $102.80 a barrel by 2310 GMT on Sunday. US West Texas Intermediate crude rose $8.31 (8.61 per cent) to $104.88.
CENTCOM blockade begins Monday
US Central Command confirmed that American forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports at 10am ET (1400 GMT) on Monday. The order follows President Donald Trump’s announcement that negotiations in Islamabad had failed to reach agreement on the nuclear issue despite progress on other fronts.
“Iran is unwilling to give up its nuclear ambitions,” Trump said, adding that the US Navy would intercept vessels paying tolls to Iran and begin clearing mines allegedly placed in the strait.
Saul Kavonic, head of energy research at MST Marquee, said the market was “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.”
ANZ analysts warned the blockade “will restrict Iran’s ability to export oil and will exacerbate the supply disruptions the market is experiencing.”
Sri Lanka impact
The $100 threshold is a critical marker for Sri Lanka’s fuel import costs. The Ceylon Petroleum Corporation chairman had recently assured supply through 12 scheduled shipments — all of which now face re-pricing risk at significantly higher crude benchmarks. The government’s Rs. 100 diesel subsidy scheme and the planned automatic tariff mechanism face immediate pressure from sustained triple-digit oil prices.
The surge also compounds the impact of the Saudi pipeline attack and ongoing Hormuz shipping disruptions on Sri Lanka’s energy security.
