HOUSTON: Oil prices jumped more than 9 per cent on Monday after Donald Trump said the US was reinstating a naval blockade on Iran, reigniting concerns over energy shipments through the Strait of Hormuz.
Near 1820 GMT, Brent oil futures jumped 9.1pc to $82.90 a barrel while US benchmark West Texas Intermediate also climbed by 9.1pc, to $77.87 a barrel.
Oil gained after Trump said the US was reinstating the blockade and that the United States would be reimbursed 20pc on all cargo shipped through the Strait of Hormuz, following renewed military exchanges with Iran.
“President Trump’s reinstatement of restrictions on Iranian maritime traffic, alongside retaliatory attacks and sharply reduced vessel flows through the strait has intensified concerns over near-term supply availability,” said Gelber & Associates analysts in a note.
Iran’s top joint military command had earlier said it would not allow Washington to intervene in the management of the strait and any attempt by the US to transit without its authorisation would be confronted.
