Oil jumps 3.5% as new strikes threaten Hormuz shipments
Oil prices surged over 4% following President Trump's announcement of a naval blockade on Iran to secure the Strait of Hormuz. Analysts warn of potential long-term supply disruptions, prompting discussions on expanding regional pipeline capacity to bypass the strait.
Why it matters
The Strait of Hormuz is a critical global energy chokepoint; any sustained closure or conflict there significantly impacts global oil supply and energy costs.
Oil prices rose more than 4% today after US President Donald Trump said the United States was reinstating a naval blockade on Iran, reigniting concerns over energy shipments through the Strait of Hormuz.
Brent crude futures were up $3.21, or 4.22%, to $79.22 this afternoon, while US West Texas Intermediate crude was up $3.04, or 4.26%, to $74.45 a barrel.
Both contracts jumped 5% after Trump said the US was reinstating the blockade following renewed military exchanges between the US and Iran.
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.
Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies.
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