Oil prices jump as US renews Iran strikes

What happened

The price of oil has jumped nearly 10% following renewed violence in the Strait of Hormuz. Brent crude futures climbed to $83 a barrel Monday, marking the “largest daily percentage gain since May 2020,” The Wall Street Journal said. The U.S. military launched its third straight night of attacks against Iran Monday night; Iran responded by striking two United Arab Emirates tankers.

Who said what

The new attacks “signaled a return to open conflict” in the region less than a month after the two nations agreed to a ceasefire, The New York Times said. They follow President Donald Trump’s social media declaration that the U.S. is “reinstating THE IRANIAN BLOCKADE,” and will take over the strait, charging a 20% fee for secure passage. That would “be a major new tax on global energy flows and would drive up the cost of the world’s oil and gas,” The Washington Post said.

What next?

The blockade goes into effect Tuesday at 4 p.m. Eastern time. Oil markets are facing a new reality, the Journal said, as the Strait of Hormuz is “no longer expected to return to a prewar norm.”

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.

Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.

Sign up