The assertion is accurate. Monday, April 13, 2026, saw a dramatic increase in global oil prices beyond $100 per barrel after US President Donald Trump imposed a naval blockade of the Strait of Hormuz in response to the failure of weekend peace negotiations with Iran.
🚨 The failure of peace negotiations leads to escalation
The declaration followed the failure of a US delegation headed by Vice President JD Vance to reach a deal with Iran in Islamabad over the weekend, so terminating a precarious two-week ceasefire.
President Trump announced that the US Navy would start a “complete naval blockade” of the vital waterway after the negotiations failed.
🗣️ Notification: A Strait Naval Blockade
Trump declared on Truth Social that the US Navy would start “BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz” on Sunday, April 12.
According to the US Central Command (CENTCOM), starting on Monday, April 13 at 10 a.m. Eastern Time, the blockade would target all marine commerce entering and leaving Iranian ports.
CENTCOM underlined, however, that ships merely passing through the Strait to and from ports outside of Iran would not be hindered.
Additionally, Trump ordered the Navy to “interdict every vessel in International Waters that has paid a toll to Iran,” citing the illegality of such payments.
The Navy was also instructed to start dismantling mines that Trump said Iran had put in the strait as part of the operation.
There is a greater chance of a direct military conflict because the Islamic Revolutionary Guard Corps (IRGC) has promised to deal “severely” with any military boats in the strait.
📈 Market Reaction Right Away: Oil Prices Go Over $100
Crude oil prices surged dramatically at the beginning of the week as markets responded instantly. Important price benchmarks shot up to much above $100 per barrel:
Brent Crude (International Benchmark): Increased by roughly 7-8%, rising as high as $102.59 to $103.47 per barrel.
West Texas Intermediate (WTI, US Benchmark): Increased more dramatically, rising beyond $104.50 and peaking at $105.44 a barrel, an increase of about 8–9%.
European Natural Gas: Early trading saw an 18% increase in futures prices, which is indicative of widespread fear in the energy sector.
● Greater Market and Geopolitical Setting
The Supply Chokepoint: About 20% of the world’s crude oil supply runs through the Strait of Hormuz, making any disruption a significant worldwide event.
Market Context: Following the announcement of a truce, oil prices had fallen to about $95 per barrel; however, the breakdown of negotiations and the announcement of the blockade reversed all of those losses and caused a new spike.
Global Financial Impact: Asian shares fell 0.8% and S&P 500 futures fell 1.1% as a result of the uncertainty. Gold prices originally dropped 1.7% as investors moved to other safe-haven assets, but the US currency rose.
