Oil prices surged nearly 10%, marking the largest single-day jump since 2020. The sharp increase followed President Trump’s announcement that he would reinstate the U.S. blockade.
Traders are betting the situation in the Strait will not return to normal anytime soon. The move signals expectations of prolonged disruption to global oil flows.
The blockade’s return threatens to tighten supply from a key shipping route. Roughly one-fifth of the world’s petroleum passes through that waterway.
Brent crude, the international benchmark, settled above $70 a barrel. Analysts said the market had priced in a swift resolution, which now appears unlikely.
The price surge caught many off guard after weeks of relative stability. Some traders had assumed diplomatic talks would ease tensions before a blockade return.
The administration’s decision reverses a previous policy of easing restrictions. It reflects a harder line on regional security and energy leverage.
Supply chain risks are now back in focus for refiners and shipping companies. Insurance costs for tankers traveling through the area have already risen.
OPEC+ may face pressure to adjust output quotas in the coming weeks. The group has been planning to increase supply, but the blockade complicates that strategy.
Energy stocks rallied alongside crude prices. Shares of major oil companies posted strong gains in morning trading.
The rally also boosted gasoline futures, raising concerns about pump prices for consumers. Higher fuel costs could weigh on inflation data in the coming months.
