OIL PRICES JUMP 9% TO ONE-MONTH HIGH AS US-IRAN TENSION ESCALATES
Oil prices jumped more than nineper cent to a one-month high late on Monday after news that a US’ naval blockade due to begin on Tuesday will cover Iran’s entire coastline, ports and oil terminals, as well as all vessels regardless of flag, reigniting concerns over energy shipments through the Strait of Hormuz.
Brent crude futures settled up $7.29, or 9.59 per cent, to $83.30, while US West Texas Intermediate crude settled up $6.73, or 9.42 per cent, to $78.14 a barrel.
Brent and WTI were trading around one per cent higher at $84.06 and $79.25 a barrel, respectively, at 6.45am UAE time.
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Brent futures posted their biggest single-day dollar gain since April 2, and highest settlement since June 12. US crude futures, meanwhile, made their largest daily gain since April 29 to settle at their highest since June 15.
The US is set to reinstate the naval blockade on July 14 at 2000 GMT, according to the US Navy-led Joint Maritime Information Center. The blockade had been lifted in mid-June.
On Monday, President Donald Trump said the United States was reinstating a naval blockade and would be reimbursed 20 per cent 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.
The UN’s shipping agency against Trump’s proposal, saying it opposes any fees for straits used in international navigation and stressing that there is no legal basis for introducing mandatory tolls on strait transits.
Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies.
Traffic had begun to increase during a fragile ceasefire agreed in June, but had slowed as tensions rose.
“The focus will remain on the number of inbound tankers as a lower number could impact production, so currently we see a risk premium and a disruption risk supporting prices,” said UBS analyst Giovanni Staunovo.
Oil prices jump 7% as US-Iran truce buckles under fresh hostilitiesOil falls 1% as investors focus on Hormuz flows after peace talksOil slips $4 as US, Iran reach peace deal to reopen Strait of Hormuz 2026-07-14T03:14:21Z
