Oil Rises After Trump Reimposes Iran Blockade, Proposes Strait Toll
2026-07-15 16:13:40
According to Axios, the ceasefire between the U.S. and Iran is unraveling, with President Trump reimposing a blockade of Iran in the Strait of Hormuz and proposing a 20% toll on cargo shipped through it. The threat sent benchmark Brent crude oil up more than 9% to $86.57 a barrel, well above the sub-$70 level seen after the ceasefire but below conflict peaks. Meanwhile, Goldman Sachs analysts estimated that pipeline and export-infrastructure projects under construction or planned could insulate more than 45% of pre-war Persian Gulf exports from future Hormuz disruptions by end of 2025, rising to over 60% by end of 2028. Two projects are already under construction: the West-East pipeline in the UAE and the Basra-Haditha Pipeline in Iraq, and a Dubai-based port operator is in talks to develop a new UAE port to reduce dependence on the strait. Despite the buildout, 7 million to 9 million barrels per day of crude and refined products remain exposed, and Qatar's LNG exports have no realistic alternative.
Disclaimer:
1. The information provided does not constitute investment advice. Investors should make independent decisions and bear all risks themselves.
2. The copyright of this content belongs to the original author. The views expressed herein are solely those of the author and do not represent the stance or position of this website.
