Oil futures climbed above $100 per barrel after President Donald Trump announced that the U.S. military would begin blockading ships seeking to enter the Strait of Hormuz, trading data showed.
U.S. benchmark West Texas Intermediate crude hovered just above $104 per barrel late Sunday night, according to the trading data. Brent crude, the international benchmark, also rose, the data showed.
Trump made the announcement after peace talks failed, according to his statement. The president said the move would target ships attempting to transit the strategic waterway.
Market participants reacted quickly to the announcement, sending prices higher on concerns about potential disruptions to shipping through the Strait of Hormuz, trading records indicated.
No additional details on the scope or timing of the blockade were included in the announcement, and trading continued late Sunday, the data showed.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
