LONDON: Oil prices surged back above $100 a barrel and stocks mostly fell on Monday as a US blockade of Iranian ports went into effect, ratcheting up fears for Middle East energy supplies.

Brent North Sea crude rose 6.5 per cent at $101.38 a barrel and the West Texas Intermediate jumped 6.2pc at $102.58 a barrel.

The resurgent geopolitical tensions come after ceasefire talks between Washington and Tehran broke down over the weekend, dousing hopes for a lasting end to a war that has threatened economies worldwide.

Traders say the prospect of widespread inflation from spiking oil prices and supply disruptions has also put a focus on corporate earnings, with a range of blue chips this week starting to report first-quarter results.

“The stagflation word is being widely aired once again as geopolitical turmoil threatens to stymie international growth and stoke inflationary pressures,” said Russ Mould, investment director at AJ Bell.

Such concerns have increased with the US beginning on Monday a partial blockade of the Strait of Hormuz, through which one-fifth of the world’s oil and gas passes.

“The blockade will be enforced impartially agai­nst vessels of all nations entering or departing Ira­ni­an ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman,” US Central Command posted on X.

However, it will allow ships not coming to or from Iran to pass through the strait.

The threat comes as Tehran has already effectively closed the Strait of Hormuz to oil and other traffic since the start of US-Israel strikes on Iran in late February.

Wall Street’s main indi­ces were mixed in late morning trade.

Asian and European markets ended the day mostly lower.

“Reopening the Strait of Hormuz remains the key requirement for reigniting a sustainable rally across risk assets,” said David Morrison, an analyst at Trade Nation.

Published in Dawn, April 14th, 2026