After the talks collapsed, Donald Trump announced that the United States would impose a blockade on Iran’s ports, preventing any ships from entering or leaving.
When energy markets reopened on Monday in Asia, the price of Brent crude oil rose by 8.5% to reach $102.37 per barrel. West Texas Intermediate crude also increased by 9%, reaching $105.34 per barrel.
Previously, prices had dropped below $100 last Wednesday after both countries agreed to a temporary two-week ceasefire.
This ceasefire aimed to reopen the Strait of Hormuz, a critical route through which 20% of the world’s oil supply passes. Shipping traffic in the strait had halted following the outbreak of fighting on February 28.
The failure of the talks led to declines in stock markets across Asia.
Japan’s Nikkei 225 index fell by 0.8%, while South Korea’s Kospi index dropped by 1.8%.
The U.S. military announced that the blockade on ships entering or leaving Iranian ports would begin this Monday at 16:00 Kigali time.
Iran also warned that any military vessels attempting to approach the Strait of Hormuz would be dealt with decisively, raising fears of further escalation and worsening oil supply disruptions.
