Global oil prices surged on Friday after negotiations between Iran and world powers ended without agreement and former US President Donald Trump threatened to block the Strait of Hormuz. The Strait of Hormuz is the world’s most critical oil transit chokepoint, handling about 20% of daily global oil consumption. A blockade would disrupt supply chains and push prices higher, analysts warned.
Trump’s announcement followed the collapse of indirect talks in Doha aimed at reviving the 2015 nuclear deal. Iranian officials blamed Washington for imposing new sanctions that undermined progress. A senior Iranian negotiator told Reuters that the talks had reached a dead end and accused the US of shifting goalposts.
Crude futures in London and New York jumped more than 3% within hours of Trump’s statement. Brent crude reached $92 a barrel, while West Texas Intermediate climbed to $88. Traders pointed to rising geopolitical risk as the main driver. The US Energy Information Administration reported that global oil inventories remain tight, leaving little buffer against supply disruptions.
The Strait of Hormuz blockade threat is not new but gains urgency as tensions rise. Iran has previously threatened to close the strait in response to sanctions. The US Fifth Fleet, based in Bahrain, maintains a military presence to deter such action. However, former US officials say Trump’s rhetoric escalates risks of miscalculation.
Oil market watchers say the immediate impact depends on whether Trump follows through. A full blockade would be unprecedented and could trigger a supply crisis. For now, the market reacts to the uncertainty, with analysts expecting volatility to persist until a clear path emerges.
Source: e24.no