In Asian trade on Tuesday, Brent Crude futures climbed 1.91% to $84.89 per barrel, while WTI Crude rose 2.02% to $79.72. This momentum follows an 8% surge on Monday, signaling that the anticipated normalization of shipping traffic through the Strait of Hormuz has stalled. The market remains particularly sensitive to President Trump’s proposal to levy a 20% fee on tankers for U.S. security services in the region.
Oil Prices Surge 12% as Middle East Tensions Ignite Market Volatility
A sharp escalation in U.S.-Iran hostilities has shattered weeks of relative market calm, pushing Brent Crude to a one-month high. With President Trump reinstating a blockade on Iranian exports and floating a controversial 20% security fee for Strait of Hormuz transit, oil prices have climbed 12% since last Friday.
Analysts at ING, including Warren Patterson and Ewa Manthey, noted that the proposal lacks practical clarity and feasibility. At current price points, a 20% fee would equate to an additional $16 per barrel—a cost significantly higher than the $1 per barrel toll previously suggested by Iran. As traders grapple with the unpredictability of these new geopolitical barriers, the prospect of smooth oil flows through this volatile maritime corridor appears increasingly unlikely.
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