Oil prices surged on Monday after US President Donald Trump said Washington would reinstate a naval blockade against Iran, intensifying its battle with Tehran over control of the Strait of Hormuz.
Brent crude futures, the international benchmark, advanced 5.3% to $80 per barrel. West Texas Intermediate futures were last seen 5.3% higher at $75.18, CNBC reported.
“We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving. All other countries will have fair and open use of the Strait,” Trump said in a post on Truth Social.
The American leader said the US will protect traffic in the vital waterway but demanded reimbursement equivalent to 20% of all cargo shipped. “The U.S.A… will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World,” he said.
The decision to reimpose the blockade comes after the US and Iran exchanged strikes over the weekend.
(More to come)
