Oil Prices Jump 2% After Trump Blockade
Investors observed a sharp extension of the rally in Asian trade on Tuesday after oil prices surged nearly 10% in the previous session, following heightened U.S.–Iran hostilities. President Donald Trump announced that the United States would reinstate a naval blockade on Iran and impose a 20% charge on cargo transiting the Strait of Hormuz to cover security costs. The U.S. military indicated that enforcement of the blockade would begin on Tuesday, targeting vessel traffic linked to Iran while permitting neutral commercial shipping to continue.
As of 20:56 ET (00:53 GMT), Brent Oil Futures expiring in September increased 2.1% to $85.01 per barrel, and West Texas Intermediate (WTI) crude futures rose 2.1% to $79.78 per barrel. Both benchmarks had surged nearly 10% in the prior session, reaching one‑month highs and recording their biggest one‑day percentage gains in months on Monday.
In parallel, Iran launched drone attacks on U.S. assets in Kuwait and struck a vessel in the Strait of Hormuz with cruise missiles. The United Arab Emirates reported that two of its tankers were attacked in Omani waters. Tehran warned that continued U.S. military action could trigger further attacks on regional energy infrastructure.
The Gulf region supplies roughly one‑fifth of global oil consumption, prompting investors to worry that further escalation could disrupt flows. The price rally weighed on equity markets and heightened inflation concerns as market participants reassessed the potential impact of higher energy costs on global growth and central‑bank policy.