Oil prices jumped 5% on Monday after US President Donald Trump reinstated a blockade on Iranian shipping through the Strait of Hormuz and announced a 20% toll on other countries using the waterway. Brent crude rose to $79.37 a barrel amid escalating US-Iran tensions.
Trump declared the US would be 'the Guardian of the Hormuz Strait' in a social media post, saying the toll would cover 'safety and security' costs. The move comes after US and Iranian strikes over the weekend, further disrupting global oil flows through the crucial chokepoint that handles a fifth of the world's oil supply.
Stock markets fell worldwide, with Asian indices hit hard. South Korea's Kospi dropped 8%, while Japan's Nikkei 225 and China's Shanghai Composite each fell 2%. In the US, the Nasdaq lost 1% and the S&P 500 0.4%. Chipmaker shares slumped, with SK Hynix down 15% and Samsung Electronics 10% lower.
The latest attacks follow a fragile US-Iranian truce signed last month. Goldman Sachs analysts noted that 'recent attacks highlight how uncertain Gulf exports remain and that a serious re-escalation could re-intensify the short-run upside risk to oil prices.' Data from Kpler showed only six vessels crossed the strait on Sunday, the fewest in five weeks.
Opec lowered its 2026 global demand growth forecast to 780,000 barrels per day from 970,000, marking its third consecutive downward revision. Meanwhile, gold fell 1.4% to $4,083 an ounce as higher oil prices fuelled inflation fears.
