Crude Oil Surges 10% in Intraday Trading! US Military Restores Blockade on Iran, Trump Warns of 'Heavy Blows' Tonight and Tomorrow, Imposes 20% Fee on Strait Shipping
Crude oil prices surged up to 10% intraday as tensions between the US and Iran escalated sharply. President Trump announced the reinstatement of a maritime blockade against Iran, targeting its ships and their customers, while stating the Strait of Hormuz would remain open to all other nations. He further declared that the US, as the "guardian" of the strait, would impose a 20% fee on all cargo transiting the strategic waterway to compensate for security costs. The US Central Command confirmed the naval blockade would commence on July 14 (GMT).
Following Trump's statements, reports emerged of explosions near Iran's Larak Island and the port of Bandar Abbas, though Iranian authorities did not confirm their nature. Iran's Foreign Minister criticized the proposed 20% fee as excessive, asserting Iran's role as the guardian of the strait. An Iranian military spokesperson warned of a strong response to any unauthorized US interference in the waterway.
The United Nations' International Maritime Organization (IMO) expressed opposition to charging tolls for passage through international straits, stating such measures lack legal foundation. Market reactions were pronounced, with Brent crude briefly surpassing $83 and WTI above $78. The situation intensified as Trump notified Congress of renewed hostilities with Iran, following US airstrikes on Iranian targets.
marsbit07/14 04:18
