The prices of Brent and WTI crude oil exceeded $100 per barrel after U.S. President Donald Trump's announcement of the blockade of Iranian maritime ports. Key indicators in the stock markets are showing declines.
Following the failure of peace talks between the U.S. and Iran and the announcement by U.S. President Donald Trump regarding the blockade of Iranian ports, oil prices surged sharply while stock prices fell, reports DW.
On the morning of Monday, April 13, the price of Brent crude oil from the North Sea rose by 8 percent to $102.80 per barrel. Before the start of U.S.-Iran negotiations on April 11, it was $95.20. A similar increase is seen in the American WTI crude oil, the price of which also exceeded $100 per barrel.
Decline in Stock Market Indicators
At the same time, leading stock market indices in Tokyo, Hong Kong, and Seoul fell by at least 1 percent. Other Asian exchanges also showed declines in key indicators.
Meanwhile, Trump acknowledged that oil and gasoline prices could remain high until the U.S. midterm elections in November.
Trump Announced the Blockade of Iranian Ports
The day before, Donald Trump announced the blockade of Iran's maritime ports following a failed round of negotiations in Islamabad. This is intended to prevent Tehran from charging shipping companies fees for passage through the Strait of Hormuz and to deprive the Islamic Republic of revenue from oil sales.
After this, the U.S. Central Command Forces (CENTCOM) announced that they would begin enforcing a blockade on all vessels entering and leaving Iranian ports and coastal areas starting April 13 at 10:00 AM Eastern Time (5:00 PM Riga time). The blockade will apply to vessels from all countries and will affect all Iranian ports in the Persian and Oman Gulfs. CENTCOM will not impede the freedom of navigation in the Strait of Hormuz and non-Iranian ports.
Negotiations in Islamabad on April 11 failed due to issues related to nuclear weapons and the Strait of Hormuz. Iran insisted during the talks on control over the strait and the right to impose tariffs on vessels passing through it, reported the British newspaper The Financial Times. The country's delegation also rejected the U.S. proposals for "joint control" over the strait.
