- Oil prices climbed to a four-week high on Tuesday after the United States reinstated a naval blockade on Iran and announced a 20 per cent toll on cargo transiting the Strait of Hormuz.
- President Donald Trump said that the US would control the vital oil transit route and levy fees on vessels, marking a significant shift from previous US policy.
- Brent crude futures rose 2.1 per cent to $85.11 a barrel, and West Texas Intermediate gained 2.3 per cent to $79.91, reaching their highest levels since a US-Iran memorandum of understanding in June.
- The renewed conflict has sharply escalated tensions, with two UAE oil tankers struck by Iranian missiles, Iran launching attacks targeting Bahrain, and US forces conducting strikes against Iranian military targets.
- Analysts warned that the shipping fee proposal materially raised the risk of further military escalation and potential oil price volatility.
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