Khaberni - Oil prices jumped about 4% on Monday, after the U.S. military began to enforce control over the entry and exit of ships from Iranian ports through the Strait of Hormuz, following the failure of talks to end the war over the weekend.
Brent crude futures rose $4.16 or 4.4% to settle at $99.36, while West Texas Intermediate crude reached $99.08 per barrel, up $2.51 or 2.6%.
Earlier in the session, Brent contracts had increased more than $8 per barrel, while West Texas Intermediate contracts rose more than $9.
The war led to the largest disruptions ever in global oil and gas supplies resulting from Iran effectively closing the Strait of Hormuz, which before the war carried about 20% of global oil and liquefied natural gas flows.
Trump said on Monday that 34 ships crossed the strait on Sunday, a number Reuters was unable to verify. Normally, over 100 ships would traverse the strait daily.
Saudi Arabia said that its crude oil sales to China will decrease in May.
European Commission President Ursula von der Leyen said that EU member countries must coordinate on energy prices amidst an increase of 22 billion euros ($25.70 billion) in fuel bills since the beginning of the war.
In the spot market, crude oil designated for immediate delivery to destinations in Europe traded at unprecedented levels, reaching about $150 per barrel.
Helima Croft, an analyst at R.B.C. Capital, said, "If Trump supports his threat of a blockade by actually sending ships, we may soon see a convergence in prices between different markets (futures, swaps, and others) and the spot market."
