Oil tops $80 as Trump revives Iran blockade

Oil prices surged above $80 per barrel on Monday, driven by heightened tensions between the United States and Iran that threaten shipping through the critical Strait of Hormuz. The escalation followed U.S. President Donald Trump's announcement of plans to impose a 20% charge on cargo transiting the waterway and his declaration of "reinstating" a naval blockade on Iran.

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The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE. The U.S.A will be reimbursed, at the rate of 20 per cent on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.

Brent crude saw a significant rise, moving from approximately $76 to over $80 per barrel. This price jump occurred amid a fresh exchange of missile and drone attacks between the two nations, with both sides accusing each other of escalating hostilities around the strategic shipping lane. In a post on his Truth Social platform, Trump asserted that the Strait of Hormuz would remain open, "with or without Iran," and stated, "We are reinstating THE IRANIAN BLOCKADE. The U.S.A will be reimbursed, at the rate of 20 per cent on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World."

Trump indicated the policy would begin immediately but did not detail its enforcement. Earlier, he suggested Washington could assume responsibility for safeguarding the maritime corridor, stating, "We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian of the strait... And we should be reimbursed for that." He also accused Iran of repeatedly violating past agreements.

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We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian of the strait. Maybe we’ll call it the guardian angel of the strait. And we should be reimbursed for that. The other nations are very wealthy. They’re on our side, and we can’t be expected to do that for nothing.

Iran swiftly rejected Trump's proposal. Iranian Foreign Minister Abbas Araqchi declared on X that Iran would remain the guardian of the Strait of Hormuz "forever" and described the proposed 20% charge as excessive. Iran's Revolutionary Guards also warned that the only way to restore normal commercial shipping was for Washington to end its actions.

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Iran would remain the guardian of the strategic waterway “forever” and described Trump’s proposal to impose a 20 per cent charge on cargoes passing through the strait as excessive.