Oil jumps above $100 as U.S. blockades Iran

Oil prices surged above $100 a barrel on Monday after the United States ordered a blockade of Iranian shipping routes, escalating tensions with Tehran and raising fresh concerns over global energy supplies.

Brent crude, the global benchmark, climbed to about $102 per barrel, while US crude rose to nearly $105, following a jump of more than 7% after weekend talks between Washington and Iran collapsed without agreement.

The move came after US President Donald Trump announced that American naval forces would begin blocking the Strait of Hormuz, a critical global shipping route through which about a fifth of the world’s oil supply passes.

US Central Command said the blockade would target Iranian ports and coastal areas, effectively tightening control over maritime traffic linked to the country’s oil exports.

The escalation reverses a brief drop in oil prices last week, when a temporary ceasefire between the US and Iran had pushed crude below the $100 mark and raised hopes of easing supply disruptions.

Instead, the renewed tensions have deepened fears of a prolonged global energy shock.

Analysts say the Strait of Hormuz remains a structural risk to oil markets, with any disruption quickly translating into higher prices worldwide.

Shipping in the region has already been severely affected since the conflict began in late February, with tankers delayed and energy flows disrupted. Despite this, Iran has continued exporting oil, with more than 58 million barrels shipped since early March, largely to China.

The latest blockade, however, threatens to further tighten supply and push prices higher if sustained.

Global markets reacted cautiously, with stock markets across Asia and Europe slipping on Monday. Investors are also reassessing inflation risks, as higher oil prices could force central banks to maintain tighter monetary policies.

Beyond oil, the Strait of Hormuz is a key route for other commodities, including fertiliser inputs and industrial materials, raising concerns about broader economic impacts if the disruption continues.

For Nigeria, the implications are immediate and severe.

Fuel prices were already elevated before the latest developments, with petrol selling at Nigerian National Petroleum Company stations for about ₦1,295 ($0.92) per litre in Abuja —far above the roughly ₦860 recorded before the outbreak of the conflict in late February.

With global crude prices rising again, analysts warn that pump prices in Nigeria could increase further in the coming weeks.

There are also growing concerns about the wider global fallout.

More than 32 million people worldwide could be plunged into poverty by the economic fallout from the Iran war, with developing countries expected to be hit hardest, according to a report released by the United Nations Development Programme on Monday.