The price of oil rose sharply after US President Donald Trump’s statement on the blockade of the Strait of Hormuz and the failure of peace talks with Iran, as well as Iran’s own response to this statement.
The price of oil rose sharply after US President Donald Trump’s statement on the blockade of the Strait of Hormuz and the failure of peace talks with Iran, as well as Iran’s own response to this statement.
According to NBC News, U.S. crude oil rose 8% to more than $104 a barrel, while international Brent crude jumped more than 7% to $103 a barrel. Wholesale gasoline prices also rose 6%, while fuel oil, a proxy for jet fuel prices, jumped 10% in early trading.
«The United States Navy, the best in the world, will begin the process of blocking any ships attempting to enter or exit the Strait of Hormuz. I have also instructed our Navy to search for and seize every vessel in international waters that has paid tolls to Iran,» Trump said on his Truth Social network.
Trump made the announcement Sunday after Vice President J.D. Vance, along with Trump’s special peace envoy Steve Witkoff and Trump’s son-in-law Jared Kushner, flew to Islamabad to hold talks with Iranian regime leaders as part of a two-week ceasefire.
Oil prices fell more than 12% last week on hopes that talks in Islamabad will lead to the Trump administration starting to scale back hostilities. The resumption of oil prices means consumer prices will also continue to rise.
«Gasoline prices are likely to start rising again,» GasBuddy analyst Patrick De Haan wrote on X. He added that price increases could resume «as soon as tomorrow.»
Meanwhile, the Speaker of the Iranian Parliament, Mohammad-Bagher Ghalibaf, threatened that current gasoline prices are «just flowers» and the situation will be much worse.
«Enjoy the current gas station rates. With the so-called 'blockade', you will soon be nostalgic for $4-5 gasoline,» he assured on the social network X.
It is worth noting that on Sunday evening, US Central Command clarified Trump’s comments, saying that the blockade would only affect «maritime traffic entering and leaving Iranian ports.» The statement added that «US forces will not impede the freedom of navigation of vessels transiting the Strait of Hormuz to and from non-Iranian ports.»
Recall that earlier J.D. Vance stated that the Iranians used ChatGPT to draft their proposal to end the war with the United States.
Before that, Iran threatened to destroy the secret $30 billion OpenAI Stargate AI data center in the UAE.
