President Trump Reinstates Iranian Shipping 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 that the U.S. will now be known as "the guardian of the Hormuz Strait," with the government seeking a 20% reimbursement 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 S&P 500 fell 0.79% to 7,515.34, the Nasdaq Composite dropped 1.55% to 25,873.18, and the Dow Jones Industrial Average settled down 138.37 points. The move follows a weekend of exchanged airstrikes between the U.S. and Iran. While Tehran declared the strait closed, President Trump disputed the claim, stating the lane remains open to commercial traffic. Investors are also preparing for a heavy week of corporate earnings and a June CPI report, which economists expect to show a 0.2% monthly decline in inflation.