Oil prices rise after Trump reinstates Iran blockade, says US to raise Hormuz transit tax
Stocks fell, and oil prices rose on Monday afternoon, following U.S. President Donald Trump's latest statement via Truth Social, in which he announced that the blockade on Iran's shipping was reinstated, while other ships would have to pay 20 percent on all cargo shipped through the Hormuz Strait.
"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran," Trump began his statement. "We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving. All other countries will have fair and open use of the Strait."
"The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT,' but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World. The process and formation will begin immediately," Trump declared.
Following this statement, the Dow Jones Industrial Average fell 0.2%, the S&P 500 was down 0.4%, and the Nasdaq Composite fell by 0.94%, while oil prices on the energy markets rose by over 4% amid reignited concern over the future of shipping through the key strait.
