Could be a bad ignition lock cylinder, or could be the cable that goes from the shift lever to the steering column. If key won't turn at all it's probably the lock cylinder. If it turns forward but not back all the way the probably the cable. Hope that helps.
SOURCE: 1998 Wranger Ignition Key Stuck / Steering Column Locked
I have had this same problem on 4 of my Jeeps. A locksmith provided me with two answers.
This key thing happens to me at least once a week.
It is a common problem with Jeeps. 1998 Wrangler, 2007 Cherokee and two 2000 Cherokees all had the issue.
1. Replace the tumbler assembly. $150. USD (Not!)
2. Place the key in the ignition, smartly impact the key on the **** end, end that is sticking out of the ignition. (Harder is not better) strike straight on as to not break the key off. 4 or 5 strikes should fix the problem every time.
FYI - flooding the switch with WD-40 will not fix the issue, it is a tumbler problem.
SOURCE: replacing ignition switch in 2001 chevy silverado
Not the igniton switch, its the ingition cylinder and or the housing. The switch is not part of what you are really turning. It's connected to it via gears. The common problem is the key gets worn out and the tumblers wear also. Eventualy they do not line up right and will not make the "bar" drop in the cylinder to allow it to turn from the off positon. If you have the title in your name and the key has never been rekeyed or the code has been changed you can go down to a dealership with all of the info for the truck and they can cut you a key from the vin number. You can try that first before you put a cylinder and housing in it.
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