TOKYO: Oil prices climbed sharply on Monday, with the US benchmark crossing the $100 mark after talks between Washington and Tehran failed to produce a breakthrough and fresh tensions rattled markets.
West Texas Intermediate (WTI) crude for May delivery surged around eight per cent in early trading to $104.50 per barrel, while Brent crude for June rose approximately seven per cent to $102.
The spike followed US President Donald Trump ordering a blockade targeting Iranian ports, intensifying concerns over global energy supplies. The US military later confirmed the move would take effect on Monday, applying to vessels travelling to and from Iran.
Kospi index
In Asian markets, equities reacted cautiously. South Korea’s Kospi index initially dropped by around two per cent before trimming losses, while Japan’s Nikkei slipped slightly by 0.3 per cent.
Last week, oil prices had declined and stock markets rallied after a Pakistan-mediated ceasefire between the US and Iran raised hopes of de-escalation. However, optimism faded quickly as tensions persisted, including continued strikes in Lebanon and limited movement through the Strait of Hormuz.
High-level negotiations held in Islamabad, led by Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, ended without an agreement, with both sides signalling pessimism over the outcome.
The ongoing conflict has disrupted global energy markets since late February, with Iran effectively restricting access to the Strait of Hormuz — a critical route that carries around one-fifth of the world’s oil and gas supplies.
