HOUSTON: Oil prices jumped more than 9 per cent on Monday after Donald Trump said the US was reinstating a naval blockade on Iran, reigniting concerns over energy shipments through the Strait of Hormuz.

Near 1820 GMT, Brent oil futures jumped 9.1pc to $82.90 a barrel while US benchmark West Texas Intermediate also climbed by 9.1pc, to $77.87 a barrel.

Oil gained after Trump said the US was reinstating the blockade and that the United States would be reimbursed 20pc on all cargo shipped through the Strait of Hormuz, following renewed military exchanges with Iran.

“President Trump’s reinstatement of restrictions on Iranian maritime traffic, alongside retaliatory attacks and sharply reduced vessel flows through the strait has intensified concerns over near-term supply availability,” said Gelber & Associates analysts in a note.

Iran’s top joint military command had earlier said it would not allow Washington to intervene in the management of the strait and any attempt by the US to transit without its authorisation would be confronted.

The UN’s shipping agency pushed back against Trump’s proposal, saying it opposes any fees for straits used in international navigation and stressing that there is no legal basis for introducing mandatory tolls on strait transits.

Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies. Traffic had begun to increase during a fragile ceasefire agreed in June, but had slowed as tensions rose.

“The focus will remain on the number of inbound tankers as a lower number could impact production, so currently we see a risk premium and a disruption risk supporting prices,” said UBS analyst Giovanni Staunovo.

As the prospect of long-term disruption looms, analysts expect countries to work on ways to permanently bypass the Strait of Hormuz.

Goldman Sachs estimated that expanding pipeline capacity in the Middle East could shield more than 60pc of pre-war Gulf oil exports from any future Hormuz disruptions by end-2028.

Published in Dawn, July 14th, 2026