Brent crude oil prices surged more than 5% to surpass $100 per barrel following a breakdown in U.S.-Iran negotiations. The spike occurred after Iran announced it would suspend peace talks and seek to close the Strait of Hormuz. In response, U.S. President Trump stated the U.S. would maintain its naval blockade of the strategic waterway. The heightened geopolitical tensions directly threaten global oil supplies, with ripple effects already pushing U.S. gas prices toward an average of $5 per gallon.
Brent crude oil prices surged approximately 5% to over $96 a barrel after Iran ended negotiations with the United States. West Texas Intermediate, the U.S. benchmark, jumped roughly 7% to above $93 a barrel according to market data.
The price spike followed Iran’s semiofficial Tasnim News Agency reporting that Tehran would suspend its involvement in peace talks. Iran vowed to seek a “complete closure” of the Strait of Hormuz in reaction to Israel’s military actions in Lebanon.
In response, President Trump stated the U.S. would continue its blockade in the Strait of Hormuz. “I think we’ve been talking too much if you want to know the truth. I think going silent would be very good, and that could be that could be for a long time,” Trump told NBC Journalist Garrett Haake.
“It doesn’t mean we’re going to go and start dropping bombs all over there,” Trump added. “We’ll just go silent. We’ll keep the blockade. Blockade is a piece of steel.”
A senior military adviser to Iran’s supreme leader, Mohsen Rezaei, said Tehran would not accept a continued naval blockade. Rezaei asserted that the strait falls under Iran’s control, adding, “The patience of the armed forces of the Islamic Republic of Iran has its limits.”
Oil prices have climbed steadily since late February, as a fifth of the world’s oil supply travels through the Strait. Gas prices in the U.S. have surged as a result, with the national average now approaching $5 a gallon.
U.S. Central Command reported exchanging fire with Iran over the weekend. The U.S. struck Iranian air defenses and drones in response to “aggressive Iranian actions,” including the shooting down of a U.S. MQ-1 “Predator” drone.
