Global oil prices surged by 5 percent, while stock markets across Asia suffered sharp losses after U.S. President Donald Trump announced the reinstatement of the U.S. blockade against Iranian vessels in the Gulf.
According to The Guardian, international benchmark Brent crude climbed to US$79.37 per barrel, up from US$72.48 per barrel before the U.S. and Israeli strikes on Tehran in late February. Brent had previously peaked at US$120 per barrel in April.
In a post on social media, Trump declared that Washington would now be known as the “Guardian of the Strait of Hormuz.” He also announced that the United States would impose a 20 percent tariff on cargo carried by vessels from other countries.
The announcement immediately rattled global financial markets.
In Europe, airline stocks on both sides of the Atlantic came under pressure as rising fuel costs increased concerns over operating expenses. On Wall Street, the Nasdaq Composite fell 1 percent, while the S&P 500 declined 0.4 percent during afternoon trading.
The impact was even more severe in Asia. South Korea’s Kospi Index plunged 8 percent, while Japan’s Nikkei 225 and China’s Shanghai Composite Index each fell 2 percent.
Chipmakers suffered some of the heaviest losses, with South Korea’s SK Hynix dropping 15 percent and Samsung Electronics falling 10 percent.
Meanwhile, gold prices slipped 1.4 percent to US$4,083 per troy ounce, as the surge in oil prices fueled concerns that central banks might have to raise interest rates to combat inflation.
According to commodity analytics firm Kpler, the number of vessels transiting the Strait of Hormuz has declined sharply. Only six ships passed through the waterway on Sunday—the lowest figure recorded in the past five weeks.
Most oil tankers were reportedly switching off their transponders while navigating the strait.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said its navy intercepted two vessels in the strait on Sunday after they deactivated their tracking systems, although it did not disclose the names of the ships involved.
The latest move by the U.S. administration to tighten control over the strategic waterway has added further uncertainty over the uninterrupted flow of Gulf oil and natural gas to global markets after months of disruption caused by the conflict.
Analysts at Goldman Sachs wrote in a research note that the latest developments highlight the ongoing uncertainty surrounding Gulf energy exports and warned that any serious escalation could once again trigger a sharp short-term increase in oil prices.
Meanwhile, OPEC lowered its 2026 global oil demand growth forecast to 780,000 barrels per day, down from its previous estimate of 970,000 barrels per day, marking the producer group’s third consecutive downward revision.
However, the International Energy Agency (IEA), based in Paris, projected an even steeper slowdown, forecasting that global oil demand could decline by 1 million barrels per day throughout 2026.***
