Stocks fell and oil hit a one-month high in Asian trading on Tuesday after President Donald Trump said the US was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20 percent fee on cargo traversing the Strait of Hormuz.

The Australian sharemarket has retreated at the open while oil prices surged after the United States and Iran escalated their grapple for control over the Strait of Hormuz.

Trump's 20% toll on Strait of Hormuz cargo sent oil prices surging 5-7%. Here's why crypto investors should care about this geopolitical shock.