Trump's 'Hormuz toll' declaration sends oil prices soaring; WTI up 9%

International oil prices have sharply increased following U.S. President Donald Trump's declaration to completely blockade Iranian ports and coastlines in the Strait of Hormuz. This move has reignited concerns over global oil supply disruptions.

On July 12, U.S. West Texas Intermediate (WTI) crude futures for August delivery jumped 9.23% to $78.0 per barrel. Simultaneously, London's ICE Futures Exchange saw Brent crude futures for September delivery rise by over 9% to $83.15 per barrel. These surges occurred despite a recent ceasefire in the Middle East, pushing prices back towards the $80 mark.

The escalation is directly linked to the renewed military tensions between the United States and Iran. President Trump's announcement of a renewed naval blockade, coupled with his threat to levy a 'security toll' of 20% of the cargo's value on all vessels transiting the Strait of Hormuz, has sent shockwaves through the market.

This aggressive stance by the U.S. administration has amplified fears of significant disruptions to global oil transportation, leading to the steep rise in oil prices. The situation highlights the critical role of the Strait of Hormuz as a vital chokepoint for global energy supplies.