President Trump Reinstates Iranian Blockade as Oil Prices Surge and U.S. Stocks Fall
President Trump reinstated a blockade on Iranian shipping through the Strait of Hormuz, causing oil prices to jump and U.S. stock indexes to decline on Monday. The administration announced the move as a response to recent airstrikes exchanged between the U.S. and Iran over the weekend. Under the new blockade, the U.S. will be known as "the guardian of the Hormuz strait" and will be reimbursed at a rate of 20% on all cargo shipped through the volatile waterway. Following the announcement, U.S. West Texas Intermediate futures rose 9.4% to top $78 per barrel, while Brent crude advanced 9.6%. The broader market reacted with a decline in major indexes. The S&P 500 fell 0.79%, the Nasdaq Composite dropped 1.55%, and the Dow Jones Industrial Average settled down 0.26%. Semiconductor shares faced significant pressure, with SK Hynix losing 9% following its Nasdaq debut. Investors are also preparing for a heavy week of earnings reports from major banks and tech giants.