London: Global crude oil prices surged by more than 9 percent after the United States announced the reimposition of a naval blockade on Iran and proposed new shipping tolls for vessels passing through the Strait of Hormuz, triggering fears of major disruptions to global energy supplies.
Brent crude, the international oil benchmark, climbed sharply to more than $83 per barrel, while U.S. West Texas Intermediate (WTI) also posted significant gains. Market analysts described the rally as the largest single-day increase in oil prices since 2020.
The sharp rise followed U.S. President Donald Trump’s announcement that Washington would reinstate a naval blockade targeting Iran and introduce new charges for commercial cargo transiting the Strait of Hormuz. The move has intensified concerns over the security of one of the world’s busiest energy corridors, through which nearly one-fifth of global oil supplies are transported.
Traders reacted swiftly to the heightened geopolitical tensions, with fears that any prolonged disruption in the Strait of Hormuz could tighten global crude supplies and push fuel prices even higher in the coming weeks.
Energy experts warned that sustained instability in the Gulf region could have far-reaching consequences for the global economy, increasing transportation costs, inflationary pressures and energy prices across major importing nations.
Financial markets are now closely monitoring developments in the Middle East, as investors assess the potential impact of continued military escalation on global trade and energy security.
