Oil tops $100/barrel

Oil climbed back above $100 a barrel early Monday after the United States said it would begin blocking ships leaving Iran’s ports. (money.usnews.com) By 0104 Greenwich Mean Time on April 13, Brent crude was up $6.71, or 7.05%, at $101.91 a barrel after closing at $95.20 on Friday. United States crude rose $6.83, or 7.13%, to $102.08. (thehindubusinessline.com) The move followed failed weekend talks between Washington and Tehran over ending the war, with the United States military saying the blockade would start Monday. Iran then threatened retaliation against Gulf ports used by neighboring states. (money.usnews.com) (msn.com) Oil traders watch the Strait of Hormuz because it is the narrow shipping lane for a large share of the world’s seaborne crude. Reuters reported in March that about 20 million barrels a day moved through the strait before the conflict disrupted traffic. (crestwoodadvisors.com) The price jump also fed through to other markets. Reuters reported the dollar strengthened as trading opened in Asia, while stock futures fell and investors cut expectations for Federal Reserve rate cuts this year. (money.usnews.com) (msn.com) President Donald Trump added a second layer of pressure on Sunday when he said China could face a 50% tariff if it supplied weapons to Iran. CNBC reported the threat followed a report that Beijing was preparing to send new air-defense systems, including shoulder-fired anti-aircraft missiles. (cnbc.com) Trump had already said on April 8 that imports from countries supplying Iran with military weapons would face immediate 50% tariffs with no exemptions. Reuters, in an April 9 report republished by U.S. News, said he did not specify the legal authority for that step. (usnews.com) Markets have seen this pattern before in the past six weeks: crude spikes when shipping through the Gulf looks less secure, then swings back when traders see a path to talks. On Monday, the path to talks narrowed and oil moved first. (cnbc.com)