Trump announces Hormuz blockade, oil spikes above $104
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- Trump announced on Truth Social that the United States will block the Strait of Hormuz, destroy Iranian mines, and interdict vessels that have paid Iran’s tolls.
- U.S. Central Command said it will begin a blockade against all vessels entering or departing Iranian ports and coastal areas starting Monday.
- Futures for major U.S. equity indexes fell on Sunday evening, with the E‑Mini Dow down 0.8% and the E‑Mini S&P 500 down 0.5%, signaling a likely market drop on Monday.
- West Texas Intermediate crude rose 8% to over $104 a barrel after the failed talks and the blockade announcement.
- Citigroup’s U.S. equity trading strategist Stuart Kaiser warned that the non‑violent escalation will likely push oil prices higher in the interim.
- Bitcoin slipped about 3% to $71,000 after the oil price surge.
- Gasoline prices rose to a national average of $4.125 per gallon as oil costs climbed.
Why it matters: The blockade lifts crude prices, boosting oil‑related revenues, while consumers confront higher pump prices and equity markets anticipate a drop; meanwhile, the heightened naval tension could trigger further confrontations, adding uncertainty for global trade, inflation, and corporate earnings forecasts in the next quarter.
