The global energy market faced a sharp jolt Monday morning as oil prices surged more than 5%, fueled by a deepening standoff between the United States and Iran that has effectively choked off the Strait of Hormuz.
The critical waterway remains closed to tanker traffic after Iranian authorities reversed an earlier decision to reopen the passage, prompting a firm response from Washington.
U.S. benchmark crude jumped 5.3% to settle at $87.88 a barrel. Brent crude, used as the international pricing standard, mirrored that move with its own 5.3% climb, reaching $95.62.
The price spike comes as President Trump confirmed that a U.S. Navy blockade of Iranian ports will stay in place, adding a layer of permanence to the regional tension.
READ: Iran Claims To Rebuild Arsenal At Record Speed During Ceasefire As U.S. Carriers Swarm Mideast
The uncertainty hit Western financial centers hard. U.S. stock futures for both the S&P 500 and the Dow Jones Industrial Average slipped 0.7%, signaling a rough start for Wall Street.
European markets followed suit in early trading; Germany’s DAX dropped 1.6%, while the CAC 40 in Paris retreated 1.2% to 8,325.67. In London, the FTSE 100 saw a more modest decline of 0.6%, landing at 10,601.64.
Asian markets managed to buck the downward trend, finishing the session mostly higher, though many indices gave back significant gains made earlier in the day.
Investors worldwide remain focused on the Persian Gulf, where the continued closure of the strait threatens the steady flow of Middle Eastern oil that much of the global economy relies on.
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