Key facts
- Oil prices surged over 9% to a one-month high following President Donald Trump's announcement of a U.S. naval blockade on Iran's entire coastline.
- Brent crude futures settled up 9.59% at over $82 per barrel, and WTI crude settled up 9.42% at over $77 per barrel.
- The blockade reignited concerns over energy shipments through the critical Strait of Hormuz, which carries roughly one-fifth of global oil consumption.
- European natural gas prices rose 3%, surpassing 50 euros, due to fears of disruption to Middle East LNG shipments.
- President Trump proposed a 20% charge on cargoes for vessels receiving U.S. protection while transiting Hormuz.
- The International Maritime Organization (IMO) criticized the proposed transit fees, stating there is no legal basis for such tolls on international navigation.
Oil prices surged over 9% to a one-month high after U.S. President Donald Trump announced a naval blockade covering Iran's entire coastline, reigniting concerns over energy shipments through the critical Strait of Hormuz, a chokepoint for approximately one-fifth of global oil consumption. Brent crude futures settled up 9.59% at over $82 per barrel, and U.S. West Texas Intermediate (WTI) crude settled up 9.42% at over $77 per barrel. This price jump follows recent escalations and attacks involving commercial shipping near the strait, which had previously led to a five-week low in observable tanker traffic, with vessels resorting to 'dark mode' transits.
European natural gas prices also rose 3%, surpassing 50 euros, due to fears that tensions could disrupt Middle East LNG shipments. Iran's IRGC warned that continued U.S. military interventions could lead to greater incidents in the global oil and gas sector. President Trump also proposed a 20% charge on cargoes for vessels receiving U.S. protection while transiting Hormuz. The International Maritime Organization (IMO) criticized this proposal, citing international law regarding freedom of navigation through straits used for international navigation.