Brent crude oil prices retreated slightly after reaching $85 a barrel Tuesday as President Donald Trump said that "trade and investment deals" into the U.S. by Persian Gulf countries would replace the 20% toll on shipping he announced on Monday for cargo transiting the Strait of Hormuz.
"Those Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future," he wrote on Truth Social.
The announcement came after U.S. forces struck Iran for the third night in a row. The U.S. is set to restart a blockade of shipping traffic in and out of Iranian ports in the Strait of Hormuz later today.
"These strikes will continue imposing a heavy cost on Iranian forces and degrade their ability to attack innocent civilians and commercial shipping in the Strait of Hormuz," U.S. Central Command said in a post on X.
The renewed hostilities between the U.S. and Iran are sparking fears of a prolonged closure of the Strait of Hormuz, causing oil prices to remain elevated and putting further strain on global supplies.
Kpler's MarineTraffic data service reported that just 10 commercial vessels crossed the strait on Monday, the lowest since just before the U.S. and Iran signed a memo of understanding aimed at reopening the strait and pausing hostilities.
Oil prices are trading at their highest levels since then as well. Brent crude futures, the international benchmark, were up 1% to around $84 a barrel Tuesday, while West Texas Intermediate futures rose 1% to around $79 a barrel.
Brent crude futures surged around 10% on Monday after President Donald Trump said the U.S. naval blockade of the strait would be reinstated following the recent escalation of strikes between the two countries. At the time, he also said non-Iranian ships would have to pay a 20% fee on cargo passing through the key oil shipping route.
"The Strait of Hormuz is once again a dangerous flashpoint and fast becoming a highly expensive one," Susannah Streeter, chief investment strategist at U.K. broker Wealth Club, said. "Inflationary pressures are beginning to build again, with oil and gas prices shooting higher just as investors prepare for the latest snapshot of U.S. consumer prices," she added.
Write to Anita Hamilton at anita.hamilton@barrons.com and Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 14, 2026 11:49 ET (15:49 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.