WTI crude jumps $6.87 to $78.27 after the US announces a total blockade of Iran, escalating geopolitical tensions in the Gulf.
Oil prices climbed 9.6% to $78.27 after the US announced a total blockade of Iran, disrupting efforts to restore navigation freedom in the Strait of Hormuz. The move includes escorting oil convoys with a 20% toll, raising concerns over supply stability.
Prior to the announcement, markets expected a limited response, but the US Navy’s confirmation of a full blockade triggered the sharp rally. Analysts warn of heightened risks to regional oil infrastructure, with potential retaliatory strikes by Iran.
Gold fell $123 as investors anticipate major oil importers may liquidate reserves to offset higher energy costs. WTI faces technical resistance near $80.52, with $100 seen as a critical threshold for market sentiment.