International crude prices climbed nearly 10% after U.S. President Donald Trump announced that the United States would reimpose a blockade on Iranian ships transiting the Strait of Hormuz. This announcement fueled bullish momentum following a weekend of traded strikes between the U.S. and Iran, leading Brent crude to surge 9.6 per cent and close at US$83.30 per barrel on July 13.
President Trump stated on social media that the U.S. would be reimbursed for helping ships transit the Strait of Hormuz, demanding payment for all other cargo moving through the waterway.
Oil steadied after its biggest advance since April as the global market reacts to the reimposed restrictions. These measures follow a brief gap between two American naval blockades, during which Iran managed to export at least 57 million barrels of crude.