Crude oil futures surged on Monday following President Donald Trump's announcement of a naval blockade on Iran.
Brent crude settled up 9.59% at $83.30 a barrel. U.S. West Texas Intermediate crude rose 9.42% to $78.14. Both benchmarks reached one-month highs as the move renewed fears of supply disruptions through the Strait of Hormuz.
The decision follows a collapsed ceasefire and weekend military strikes between the U.S. and Iran. The blockade begins July 14 and covers all Iranian ports, oil terminals, and vessels regardless of flag. This escalation threatens the Strait of Hormuz, which carries one-fifth of the world's daily oil supply.