West Texas Intermediate (WTI) crude oil prices surged 9.4% on Monday, closing at $78.14 per barrel, as markets reacted to the formal enforcement of a US naval blockade against Iranian vessels.
The price spike reflects immediate concerns over potential supply disruptions in the Strait of Hormuz, a critical chokepoint for global oil shipments.
The move follows an announcement by US President Donald Trump to reinstate the blockade, a decision that marks a significant escalation in tensions between Washington and Tehran.
The Joint Maritime Information Center, led by the US Navy, confirmed that the blockade against Iranian ports and the coastline took effect Tuesday evening.
This enforcement transforms diplomatic rhetoric into operational reality, directly impacting shipping routes and insurance premiums for tankers transiting the region.
Traders are now pricing in a higher risk premium for Middle Eastern crude, with the WTI benchmark jumping sharply in response to the news.