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Oil Prices Surge Above $80 Amid Renewed US-Iran Clash
Global oil prices surged past $80 per barrel on Monday after renewed confrontation between the United States and Iran raised fears over shipping through the Strait of Hormuz, a vital oil transit route.
The escalation followed President Donald Trump’s announcement of a 20% charge on cargo passing through the strait and the reinstatement of a naval blockade on Iran, moves that rattled energy markets.
According to oilprice.com, Brent crude jumped from about $76 to above $80 after fresh missile and drone exchanges between the two countries.
Trump insisted on Truth Social that, “The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE.”
In a Fox News interview, Trump added, “We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian angel of the strait. And we should be reimbursed for that.”
Iran rejected the proposal, with Foreign Minister Abbas Araqchi declaring on X that Iran would remain the strait’s guardian “forever” and describing Trump’s 20% levy as excessive.
The Revolutionary Guards warned that US military interference could worsen incidents in the global oil and gas sector.
The US Navy-led Joint Maritime Information Centre said enforcement of the blockade would begin Tuesday, covering all Iranian ports and oil terminals.
Neutral transit to non-Iranian destinations would not be impeded, but non-compliant vessels could be intercepted or captured.
Meanwhile, US Central Command reported strikes on an Iranian submarine and ship facility, while Iran claimed attacks on US bases in Jordan, Bahrain, and Kuwait. Ship-tracking data showed restricted traffic through the strait.
The confrontation has cast doubt on last month’s interim agreement to suspend hostilities for 60 days. Analysts note that the strait handles about one-fifth of global oil consumption daily, making disruptions highly consequential.
Legal experts also questioned Trump’s levy, citing the UN Convention on the Law of the Sea, which guarantees unimpeded passage through international straits.
