Oil prices have surged back above $100 per barrel as tensions escalate in the Middle East following U.S. President Donald Trump's announcement of a naval blockade targeting Iranian shipping in the Strait of Hormuz. Brent crude has jumped to $101.88, while U.S. crude reached $104.69, reflecting nearly 8% gains in both benchmarks. This spike in prices comes after failed peace talks mediated by Pakistan, leading to the U.S. enforcing maritime restrictions on vessels to and from Iranian ports. Market analysts warn that the geopolitical risks are structurally embedded in oil markets, with the blockade potentially impacting 2 million barrels per day of Iranian oil exports, straining relations with China, a major customer. Despite the rising oil prices, the overall market reaction has been relatively contained, with modest losses in Asia-Pacific markets as investors perceive the blockade as a negotiating tactic rather than an immediate escalation. The blockade has also adversely affected 20,000 seafarers trapped in the Gulf, highlighting the human impact of geopolitical tensions.