LONDON — Oil prices surged on Tuesday after the United States confirmed it would begin enforcing a maritime blockade on Iran, heightening concerns over potential disruptions to energy supplies from the Middle East despite U.S. assurances that commercial transit through the Strait of Hormuz would remain open for non-Iranian shipping.
Brent crude and U.S. West Texas Intermediate futures both rose in early trading as investors reacted to the latest escalation in tensions between Washington and Tehran, with market participants weighing the risk of broader disruption in one of the world's most important oil transit corridors.
The U.S. Navy-led Joint Maritime Information Center (JMIC) said the blockade would take effect on July 14 and apply to all vessels entering or departing Iranian ports, oil terminals and coastal areas, regardless of nationality. The advisory warned that unauthorized vessels could face interception, diversion or capture, and that force could be used against those failing to comply. The center added that neutral vessels transiting the Strait of Hormuz to or from destinations outside Iran would not be impeded.
President Donald Trump announced the renewed blockade on Monday, saying the United States would ensure the Strait of Hormuz remained open while reinstating restrictions on Iranian shipping following renewed exchanges of missile and drone attacks between U.S. and Iranian forces. Trump also said Washington intended to seek reimbursement for maritime security operations through a proposed charge on cargo transiting the waterway, although details of how such a system would operate were not immediately available.
The Strait of Hormuz handles a significant share of global seaborne crude oil exports, making any threat to navigation through the waterway closely watched by energy markets. Analysts said traders were pricing in a higher geopolitical risk premium as the latest military and maritime measures increased uncertainty over regional stability.
Iran has previously opposed U.S. military operations in the Gulf and has challenged Washington's actions in and around the strategic waterway. The latest U.S. announcement followed several days of renewed hostilities that have cast doubt on earlier efforts to reduce tensions between the two countries.
As of Tuesday, U.S. authorities said enforcement of the blockade was proceeding as scheduled, while maintaining that commercial shipping unrelated to Iran would continue to have access through the Strait of Hormuz. No official announcement had been made of a complete closure of the strait to international maritime traffic.
