Oil prices climbed above $80 per barrel on Monday after renewed military confrontation between the United States and Iran heightened concerns over shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.
The latest escalation came as United States President Donald Trump announced plans to impose a 20 per cent charge on cargo passing through the Strait of Hormuz, saying Washington should be reimbursed for securing the strategic waterway. He also declared that the United States was “reinstating” a naval blockade on Iran, further raising fears over global crude oil supplies and energy markets.
According to oilprice.com, Brent crude rose from about $76 to above $80 per barrel following a fresh exchange of missile and drone attacks between the two countries, with both sides accusing each other of escalating hostilities around the strategic shipping lane.
In a post on his Truth Social platform, Trump insisted the Strait of Hormuz would remain open regardless of Iran’s actions.
“The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE. The U.S.A will be reimbursed, at the rate of 20 per cent 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.
