Oil prices surge up 5 percent, reaching $106 per barrel as US and Iran tensions continue

Oil prices have surged above $106 per barrel as tensions between the United States and Iran escalate in the Strait of Hormuz, a key global energy route.

Brent crude, the international benchmark, reached $106.80 early on Friday, up nearly five percent from its previous close, according to market data.

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The rise follows a sharp slowdown in shipping through the strait, which carries around one fifth of the world’s oil and gas supply.

The disruption comes after a series of confrontations between the US and Iran, including the seizure of commercial vessels.

According to reports, Iran’s Islamic Revolutionary Guard Corps captured two foreign cargo ships, while the US moved to block Iranian maritime trade.

US President Donald Trump said on Truth Social that he had ordered the navy to act against Iranian activity in the waterway.

“It is ‘Sealed up Tight,’ until such time as Iran is able to make a DEAL!!!” he wrote.

Shipping traffic has dropped sharply, with only nine vessels passing through on Wednesday compared with an average of 129 daily before the conflict, according to United Nations Trade and Development data.