Overview
- President Donald Trump announced on Tuesday that the United States would reinstate a naval blockade of Iranian shipping in the Gulf and propose a 20% fee on cargo transiting the Strait of Hormuz.
- Brent crude jumped to about $85.50 a barrel, its highest since mid‑June, as traders priced a near‑term disruption to global oil flows.
- Ship‑tracking reports show a marked drop in vessel transits through the Strait, with only a small fraction of the usual traffic recorded in the most recent days.
- Equity markets fell and volatility rose with Asian indices swinging lower, India’s Sensex and Nifty opening several hundred points down, Pakistan’s KSE‑100 plunging intraday, foreign institutional investors turning net sellers and the rupee weakening.
- The blockade and levy increase imported fuel costs for oil importers, heighten inflation and balance‑of‑payments pressure, and put focus on central bank and U.S. policy moves that could amplify capital outflows from emerging markets.