Oil prices blew past $100 a barrel on Sunday after President Donald Trump announced the United States will impose a full naval blockade of the Strait of Hormuz — the latest escalation in a conflict that has already produced the worst energy shock since the 1970s.
The price spike
U.S. crude oil futures for May delivery jumped nearly 8 percent to $104.20 per barrel. International benchmark Brent crude for June delivery advanced 7 percent to $101.86. Al Jazeera reported Brent eventually surging past $103. The move marks the first time oil has traded above $100 since June 2022.
How we got here
The Strait of Hormuz has been effectively closed since 28 February 2026, when the United States and Israel launched an air war against Iran. In retaliation, Iran’s Islamic Revolutionary Guard Corps blocked the strait — through which roughly 20 million barrels of oil per day normally transit, representing 20 percent of global seaborne oil trade. Tanker traffic dropped first by about 70 percent, then to near zero.
On Saturday, JD Vance announced that peace talks between the US and Iran in Islamabad had collapsed. Hours later, Trump declared the naval blockade via social media, stating the US would intercept “any and all ships” entering or leaving the strait. US Central Command confirmed the blockade would begin on Monday at 10 a.m. ET.
The global impact
Airlines are already passing costs to consumers: American Airlines raised checked bag fees by $10 in response to surging jet fuel costs, joining Delta, Southwest, and others. JPMorgan CEO Jamie Dimon has flagged Iran war-fuelled inflation, combined with private credit risks and AI-linked job losses, as the dominant threats to the global economy.
For energy-importing nations — including most of Africa — the price spike translates directly into higher fuel, transport, and food costs. Ghana’s own cedi appreciation may be partially offset by the oil price shock, as the country’s refineries depend on imported crude.
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