Oil Jumps as Trump Moves to Block Iran at Hormuz

Crude oil rose more than 4% to near $75 per barrel on Monday after President Donald Trump said the US would reimpose a blockade on Iranian vessels using the Strait of Hormuz and seek payments on other cargo passing through the waterway. The comments followed renewed clashes between Washington and Tehran, with attacks on regional energy infrastructure adding to supply concerns. Trump said Hormuz would remain open with or without Iran and that the US would seek a 20% charge on other shipments through the chokepoint. At current prices, such a fee would amount to roughly $32 million for a supertanker, far above previous Iranian transit charges of up to $2 million. The US launched strikes targeting Iran’s ability to disrupt shipping, while Tehran retaliated against US allies, including a reported attack on a Kuwaiti offshore drilling platform. Meanwhile, OPEC reduced its 2026 oil demand growth forecast to 800,000 barrels per day.

Crude oil climbed more than 3% to around $74 per barrel on Monday after the US launched another round of strikes against Iran, intensifying concerns over supply disruptions in the Middle East. The two sides offered conflicting accounts on the status of the Strait of Hormuz, with Iran declaring the waterway closed until further notice, while Western naval forces insisted it remained open to commercial shipping. Tehran said efforts to ease tensions were continuing, although it acknowledged the interim peace agreement had entered a critical phase. Iran also launched attacks against US allies in the region, while Kuwait reported damage to an offshore drilling platform, marking the first direct strike on energy infrastructure in weeks. Tanker traffic through Hormuz remained subdued, although some vessels may have continued transiting without transmitting satellite signals. The Joint Maritime Information Center said the Omani shipping corridor remained operational.

Crude oil climbed about 4% to above $74 per barrel on Monday, snapping a two-day losing streak as the US and Iran continued to exchange missile strikes amid ongoing tensions over shipping through the Strait of Hormuz. The US carried out its fourth strike in a week against Iran on Sunday in retaliation for an Iranian attack on a Cyprus-flagged container ship. Tehran declared that the Strait of Hormuz would be closed "until further notice," although the claim was rejected by the US Central Command. Oil prices have rebounded since last week as the renewed hostilities reversed part of the losses triggered by the interim US-Iran peace agreement, which had fueled expectations of increased Middle East energy supplies. The latest escalation has weakened hopes for renewed diplomacy, with Tehran insisting that Washington must first fulfill its previous commitments on Hormuz transit and the normalization of Iranian oil exports before negotiations can resume.