US blockade of Iran has raised global concerns, with experts warning that any move to control the Strait of Hormuz could escalate conflict, disrupt oil supplies and trigger retaliation.(Representative Photo)
Global oil prices rose sharply after the United States moved to enforce a naval blockade around Iranian ports, raising concerns over supply disruptions, according to Associated Press (AP).
US crude climbed 8 per cent to $104.24 a barrel, while Brent crude rose 7 per cent to $102.29. The benchmark has been volatile during the Iran war, rising from about $70 per barrel before the conflict in late February to more than $119 at its peak.
However, ahead of peace talks on Friday, Brent for June delivery had fallen 0.8 per cent to $95.20 a barrel.
Blockade and Strait of Hormuz
Iran has been effectively controlling the Strait of Hormuz, a key route for global oil shipments.
The US Central Command said the blockade would be “enforced impartially against vessels of all nations” entering or leaving Iranian ports and coastal areas, AP reported. It added that ships travelling between non-Iranian ports would still be allowed to pass through the Strait.
Around a fifth of the world’s traded oil moves through the Strait each day, with major exporters including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran relying on the route.
The move raises the risk of tighter global oil supply. Even partial restrictions in the Strait can slow shipments and delay deliveries.
Shipping activity has remained limited in recent days. Marine tracking data shows that more than 40 commercial vessels have crossed the route since the ceasefire began, according to AP.
Fewer ships moving through the region and higher risks for tankers can push up prices and transport costs, adding pressure on countries that depend on oil from the Middle East.
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US blockade of Iran has raised global concerns, with experts warning that any move to control the Strait of Hormuz could escalate conflict, disrupt oil supplies and trigger retaliation.(Representative Photo) 
