By Agencies and published by CNA
TOKYO – The US oil benchmark rebounded above US$100 a barrel on Monday (April 13) after peace talks between the United States and Iran failed to make a breakthrough, and with US President Donald Trump ordering a blockade of Iranian ports.
Shortly after trading began, a barrel of West Texas Intermediate for May delivery rose around 8 percent to US$104.50, while June delivery of international benchmark Brent rose 7 percent to US$102.
In early trade in Asia, South Korea’s benchmark Kospi index fell 2 percent, before recovering slightly, while Japan’s Nikkei was down 0.3 percent.
Oil prices had sunk and stocks soared last week after Trump agreed to a two-week ceasefire mediated by Pakistan, despite its tenuousness becoming quickly apparent as Israel continued to strike Lebanon and the Strait of Hormuz remained effectively closed.
The dollar also strengthened to the highest level in a week in a broad rally against most of its peers in early Asian trade on Monday.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was up as much as 0.5 percent at US$99.187, its highest level since April 7.
The euro was down 0.5 percent at US$1.1667 as the British pound fell 0.6 percent to US$1.3383, while the Australian dollar was 0.8 percent lower at US$0.7014 and the New Zealand dollar was off 0.7 percent at US$0.5798.
US President Donald Trump said on Sunday that the US Navy would start blockading the Strait of Hormuz after marathon talks with Iran failed to reach a deal to end the war, jeopardising a fragile two-week ceasefire.
“Early and thin FX trading this morning is showcasing a risk-off mood, with the broad-based rally in the USD in response,” analysts from Westpac wrote in a research note.
Choking off flow of Iranian oil
The US Central Command said US forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports from 10 a.m. ET (9 p.m., Thailand time) on Monday, a Reuters report published by MSN.com said.
It would 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,” a CENTCOM statement on X said.
US forces would not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports, it added.
IG market analyst Tony Sycamore said the move would effectively choke off the flow of Iranian oil, forcing Tehran’s allies and customers to apply the necessary pressure to get the waterway reopened.
Iran’s Revolutionary Guards said on Sunday that any military vessels attempting to approach the Strait of Hormuz would be considered a violation of the two-week US ceasefire and be dealt with harshly and decisively.
Despite the stalemate, three supertankers fully laden with oil passed through the Strait of Hormuz on Saturday, shipping data showed. They appeared to be the first vessels to exit the Gulf since the ceasefire deal was struck last week.
Oil tankers are steering clear of the Strait of Hormuz ahead of the US blockade on Iran, shipping data on LSEG showed.
On Sunday, Saudi Arabia said it has restored full oil pumping capacity through the East-West pipeline to about 7 million barrels per day, days after providing an assessment of damage to its energy sector from attacks during the Iran conflict.
CAPTIONS:
Top – A vessel at the Strait of Hormuz, off the coast of Oman’s Musandam province on April 12, 2026. Photo: Reuters and published by CNA
Insert – A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia on June 4, 2023. Photo – Reuters /Alexander Manzyuk and published by MSN.com
Front Page – Oil tankers and cargo ships line up in the Strait of Hormuz as seen from Khor Fakkan, United Arab Emirates, on Wednesday, March 11, 2026. Photo – AP Photo/Altaf Qadri,File and published by Yahoo!News
Also read:
Chadchart launches Songkran fun at Silom
Severe forest fires raging in Mae Hong Son with hotspots skyrocketing
Transport relief for over 460,000 vehicles approved
Heavy traffic as Songkran exodus starts
Anutin urged to find out if Pipat involved in hoarding of oil
Ekniti unveils ‘old car for new car’ scheme to cut oil use
NACC advised to withhold lese majeste case against 10 People’s MPs until after Songkran
Supreme Court asked to spare 10 People’s MPs’ legislative duties
Supajee shrugs off ridicule over US streetside campus
Somsak awaits ministerial seat down to the wire
