Oil prices jumped to their highest level in four weeks on Tuesday as crude markets absorbed the announcement by President Donald Trump that the United States would reimpose a naval blockade on Iranian shipping and propose a 20 percent tariff on freight transiting the Strait of Hormuz.
Brent crude futures climbed to $84.80 a barrel in early Asian trading, while West Texas Intermediate rose 2.2 percent to $79.84. The gains follow Monday's session, when prices posted their largest single-day jump since 2020 after the US launched strikes on Iran for a third consecutive night and Iran retaliated by attacking American bases in the Middle East. Two UAE tankers were struck by Iranian cruise missiles in Omani waters, killing one Indian crew member.
Tanker transits through the Strait of Hormuz have dropped to a two-month low. Trump has notified Congress that military operations have resumed, upending a mid-June understanding that had eased oil flows. Attacks have also damaged Qatar's Ras Laffan gas facility and Houthi forces in Yemen have launched operations against Saudi Arabia. Polling indicates 79 percent of Americans expect a prolonged conflict.