Trump Orders U.S. Navy to Blockade Strait of Hormuz, Pushing Oil Prices Above $100

Oil prices surged past $100 per barrel after President Trump announced the U.S. would blockade the Strait of Hormuz.

“Crypto markets stall as oil surges past $100 on Strait of Hormuz blockade Bitcoin and ether retreated Monday as tensions in the Middle East triggered a spike in crude oil, forcing traders into defensive derivatives positioning”

@coindesk

Brent crude jumped over 7% to $102.29, while WTI rose roughly 8% to $104.56.

@coindesk

Trump said the U.S. Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz.

The move effectively seizes control of maritime traffic in a waterway through which about 20% of the world's oil supply passes.

Oil prices had tumbled last week after the U.S. and Iran agreed to a ceasefire, but the blockade threat undid much of those gains.

The surge in crude sent wholesale gas prices higher and pushed stock futures lower.

European stocks fell, with the STOXX 600 down 0.8%.

S&P 500 futures fell 0.6%.

Al Jazeera

Gold prices fell more than 2% amid a stronger U.S. dollar.

Last week's U.S. inflation data showed consumer prices rose by the most in nearly four years.

Money markets priced in a roughly 25 basis point Fed rate hike.

Prices would likely remain elevated for some time due to shut-in production and damaged facilities.

Crypto markets stalled as the oil surge and Hormuz blockade threat triggered defensive positioning.

Bitcoin remained trapped in a monthslong trading range after failing to clear resistance at $74,000.

Short interest rose for some major altcoins like Cardano.

Speculative memecoins and select DeFi tokens outperformed the wider market.

Bitcoin and ether's options-based implied volatility metrics remained low.

The market was pricing in calmer, slower price movements despite the geopolitical turmoil.