Oil prices jumped above $100 a barrel as energy markets reopened on Monday in Asia after talks between the US and Iran ended without a new deal and Donald Trump threatened to blockade Iranian ports.
Global benchmark Brent crude climbed by 8.5%, reaching $102.37 (£77.15), while West Texas Intermediate saw a 9% increase, priced at $105.34.
The breakdown of negotiations over the weekend has raised concerns about a potential deepening global energy crisis.
Just last Wednesday, the price of oil had plunged below $100 following a conditional two-week ceasefire deal between Washington and Tehran, which included the opening of the vital Strait of Hormuz trade waterway.
The Strait of Hormuz, through which a fifth of the world's energy shipments pass, has become a contentious area amid the ongoing Iran war, particularly after Tehran's threats to retaliate against vessels transiting the strait.
Energy shipments have stagnated since the conflict escalated on February 28, though some nations like India and Malaysia have managed to negotiate safe passage for their ships.
International energy prices have soared in response to the ongoing disruptions.
Trump declared via a Truth Social post on Sunday that the US would commence BLOCKADING any and all ships trying to enter or leave the Strait of Hormuz.
US Central Command (Centcom) announced that the blockade against vessels entering and exiting Iranian ports would take effect at 10:00 ET (14:00 GMT) on Monday, and it plans to enforce it impartially against ships of all nations.
However, Centcom assured it would not impede vessels traveling to or from non-Iranian ports through the Strait of Hormuz.
Iranian parliamentary speaker Mohammad Bagher Ghalibaf, who led negotiations for Tehran, stated the country will not submit to any threat, while the Islamic Revolutionary Guard Corps warned any military vessels approaching the strait would be seen as violating the ceasefire and would be dealt with severely.\
