Brent and WTI post largest single-day gains in months after US reinstates Iran blockade and Saudi facilities come under attack.
Oil benchmarks surged nearly 10% as geopolitical tensions escalated, with Brent settling at $83 and WTI at $78 a barrel. The gains marked the largest single-day moves in months, driven by fears of prolonged supply disruptions in the Strait of Hormuz.
The US reinstated a naval blockade on Iran starting Tuesday, imposing a 20% security fee on cargo transits. Saudi Arabia also reported attacks on Abha International Airport and an explosion in Jeddah, following strikes on Iranian-linked targets in Yemen.
Traders dismissed exemptions for neutral shipping, focusing instead on potential tanker avoidance of the strait. With the US signaling possible strikes on Iranian nuclear sites, the risk premium in oil prices shows no signs of easing.