Oil surges 7% amid renewed geopolitical tensions

Oil drilling rigs

Oil surged back above $100-mark today, April 13, as the US Navy prepared to close the Strait of Hormuz to ships traveling to and from Iran, a move that could limit Iranian oil exports, after Washington and Tehran failed to reach an agreement to end the war.

Brent crude was trading up 7% at $101.89 a barrel, at 09:22 am Makkah time. West Texas Intermediate (WTI) rose 7.8% to $104.9 a barrel.

Saul Kavonic, head of energy research at MST Marquee said the market is now largely back to where it was before the ceasefire. The US will now block the flow of the remaining Iranian oil, which amounts to two million barrels per day, through the Strait of Hormuz, Reuters reported.