Global oil prices surged on Monday after US President Donald Trump announced that Washington would reinstate a naval blockade on Iran and impose a 20% charge on cargo transiting the Strait of Hormuz.
The announcement heightened concerns over energy supplies through one of the world's busiest oil shipping routes, sending crude prices sharply higher.
Brent crude, the international benchmark, climbed about 9% to around $83 per barrel, while US West Texas Intermediate (WTI) rose to nearly $78 per barrel, marking their highest levels in almost a month.
According to market data, Brent was on course for its biggest single-day gain since May 2020.
In a post on Truth Social, Trump said the United States would become the "Guardian of the Strait of Hormuz" and would be reimbursed for ensuring maritime security.
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"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran," Trump wrote.
He also announced that the US would impose a 20% charge on all cargo shipped through the strategic waterway to cover the costs of maintaining security.
The US Navy-led Joint Maritime Information Centre (JMIC) said enforcement of the blockade will begin at 20:00 GMT (4:00 p.m. ET) on July 14, covering Iranian ports and coastal areas.
The statement said vessels heading to or from non-Iranian destinations would still be permitted to transit the Strait of Hormuz, while humanitarian shipments would be allowed following inspections.
The renewed tensions come after US Central Command (CENTCOM) said it had struck around 140 targets in Iran during its latest military operation.
Iran has responded with attacks targeting US military facilities in the Gulf and has accused Washington of violating recent understandings over the management of the Strait of Hormuz.
The Strait of Hormuz remains one of the world's most strategically important maritime chokepoints, handling roughly one-fifth of global oil shipments, making any disruption a major concern for global energy markets.
