Crude oil surged above $100 a barrel with more than a $3 jump on unconfirmed rumors that Iran continued its military maneuvers and closed the Strait of Hormuz in the Persian Gulf where the rise was further supported by a positive opening for Wall Street.

Crude oil futures for January settlement bounced to strike a fresh intraday high with the start of the U.S. session at $101.25 per barrel after news that Iran closed Strait of Hormuz and with soon after declined from the high to still trade strong around $100.20 per barrel higher by 2.47% from the opening of $97.85 and after reaching the low of $97.60 per barrel.

The unconfirmed report that Iran closed the Strait of Hormuz sent a sudden shock wave in the market that the tension is indeed rising and Iran might use oil as its political weapon after recent reports this week said that military was to practice its ability to close the Gulf to shipping in one of the most important oil transit channels in the world and the news raised fears over supply especially as it comes after the IEA report and OPEC meeting tomorrow.