Cargo ships anchored near the Strait of Hormuz off the eastern coast of Khor Fakkan, UAE, on Sunday (local time). [AFP]
Cargo ships anchored near the Strait of Hormuz off the eastern coast of Khor Fakkan, UAE, on Sunday (local time). [AFP]

International oil prices surged nearly 10% after US President Donald Trump announced the resumption of a naval blockade against Iran and declared that ships transiting the Strait of Hormuz would be charged a "safe passage fee." Renewed military tensions between Washington and Tehran rattled markets already on edge over potential disruptions to Middle East crude supplies.

September Brent crude futures closed at $83.30 per barrel on the ICE Futures Exchange on Sunday (local time), a 9.6% jump from the previous session.

During trading, the contract touched $83.54 per barrel — its highest level in roughly a month, since just before the United States and Iran signed a ceasefire MOU on June 16.

August West Texas Intermediate futures on the New York Mercantile Exchange also rose 9.4%, settling at $78.14 per barrel.

The immediate trigger for the price spike was Trump's announcement reinstating the naval blockade against Iran.

Trump said the United States would resume its maritime blockade of vessels traveling to and from Iranian ports and coastal areas through the Strait of Hormuz. He also declared that US forces would collect a "safe passage fee" equal to 20% of a ship's cargo value in exchange for guaranteeing safe transit for civilian vessels.

CENTCOM announced that the naval blockade against Iran would resume at 4 p.m. Eastern time Monday (5 a.m. Wednesday, Korean Standard Time).

The move effectively returns US-Iran relations to the confrontational posture that preceded last month's ceasefire MOU, and tensions around the Strait of Hormuz are expected to intensify further.

Energy research firm Gelber & Associates said in a report that "the combination of Trump's reimposed naval blockade, the threat of retaliatory strikes, and a sharp drop in vessel traffic through the Strait of Hormuz has amplified near-term concerns about crude supply."

Iran pushed back sharply.

A spokesperson for the Imam Khomeini Central Command, a unit under Iran's Islamic Revolutionary Guard Corps, said in a statement that Iran "will absolutely not allow the United States to interfere in the management of the Strait of Hormuz."

Ukraine's strikes on Russian energy infrastructure added to supply anxiety.

Rostyslav Brovdi, commander of Ukraine's Unmanned Systems Forces, said his drone units attacked 10 Russian oil tankers and four passenger vessels overnight and also struck a major oil refinery in Syzran, Russia.

A drawdown in US Strategic Petroleum Reserve stocks further stoked supply concerns.

SPR inventories fell by 3 million barrels last week to 316.5 million barrels, according to the US Department of Energy — the lowest level since April 1983.


sjy@heraldcorp.com