Oil prices surge, stocks fall after Trump reinstates Iran blockade
8 reported2 unconfirmed
President Donald Trump reinstated the U.S. naval blockade on Iranian shipping Monday and declared a 20% fee on all non-Iranian cargo transiting the Strait of Hormuz, according to a single-source report from qz.com. The announcement sent oil prices surging and pushed stock markets lower. Brent crude rose as much as 8% to above $82 a barrel, though it remains far below its wartime high of nearly $120. Iran’s top military command said Washington would not be permitted to manage the strait, and the United Nations shipping agency stated there is no legal basis for mandatory tolls, according to Reuters. The move followed a weekend of renewed strikes, with the U.S. military hitting roughly 140 targets in Iran after Tehran attacked a container ship, and Iran firing at U.S. installations in Bahrain, Jordan and Kuwait, which each said their defenses intercepted the missiles without casualties. Tanker traffic through the strait collapsed 52% on Sunday compared with the previous weekend, with only 12 authorized crossings, according to Barron’s. On Wall Street, the S&P 500 fell 0.7% and the Nasdaq dropped 1.4%, led by declines in chip stocks.
What’s reported
Trump reinstated the U.S. naval blockade on Iranian shipping Monday and declared a 20% fee on non-Iranian cargo transiting the Strait of Hormuz.
Trump announced the moves in a Truth Social post, calling the U.S. "THE GUARDIAN OF THE HORMUZ STRAIT."
Brent crude surged as much as 8% to above $82 a barrel but remains below its wartime high of nearly $120.
Iran’s top military command said Washington would not be permitted to manage the strait; the UN shipping agency said there is no legal basis for mandatory tolls.
The U.S. military hit roughly 140 targets in Iran after Tehran attacked a container ship; Iran fired at U.S. installations in Bahrain, Jordan and Kuwait, with no casualties reported.
Tanker traffic through the strait fell 52% on Sunday compared with the previous weekend, with only 12 authorized crossings.
The S&P 500 fell 0.7%, the Nasdaq dropped 1.4%; Nvidia fell 3.2%, Micron fell 4.9%, and South Korea’s Kospi dropped 8.9%.
AAA data showed the national average for gasoline at $3.87 a gallon Monday, up from $3.80 the previous week; diesel rose to $4.88 from $4.76.
Open questions
How the 20% fee on non-Iranian cargo would be collected.
Whether the renewed blockade and toll will lead to further military escalation.
Key figures
President Donald Trump
Iran’s top military command (not named)
United Nations shipping agency (not named)
Sources: qz.com
