Crude oil advanced toward $79 per barrel on Tuesday, extending its weekly gain to more than 10%, after President Donald Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz and announced that all other cargo passing through the waterway would be subject to new payment requirements. The blockade is scheduled to take effect at 4 p.m. Eastern Time today.
Trump called for a 20% reimbursement on cargoes, arguing that the United States should be compensated by countries that benefit from its efforts to secure the strait, including Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, and Kuwait. The measures came amid renewed hostilities between Washington and Tehran, with the US aiming to limit Iran’s capacity to disrupt maritime shipping, while Tehran responded by targeting US allies in the region.
Separately, Trump said he would support a Russian sanctions bill championed by the late Senator Lindsey Graham that would renew efforts to penalize buyers of Russian oil and natural gas.