Global oil prices climbed sharply on Tuesday after President Donald Trump announced plans to impose a 20% fee on cargo transiting the Strait of Hormuz and reinstate a U.S. blockade of Iranian ports, raising fresh concerns over global energy supplies.
U.S. West Texas Intermediate crude rose above $80 per barrel, while Brent crude climbed past $87 after extending gains from the previous session.
U.S. Central Command said the renewed blockade of Iranian ports would take effect later Tuesday.
The report said Citi warned the proposal significantly increases the risk of further military escalation and could prompt Iran to abandon its memorandum of understanding with Washington until after the U.S. midterm elections.
Before the conflict, roughly one-fifth of global oil shipments passed through the Strait of Hormuz, making the route critical to global energy markets.
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The price of international benchmark Brent crude oil shot up to a one-month high over $86 a barrel early Tuesday after President Trump said the U.S. was reinstating the blockade of Iranian ports and would charge a 20% security fee on all cargo shipments passing through the Strait…
— CBS News (@CBSNews) July 14, 2026
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