BRENT CRUDE RISES ABOVE $85 ON HORMUZ SHIPPING CHANGES

Brent crude oil rose above $85 a barrel for the first time in a month following announcements by US President Donald Trump regarding shipping in the Strait of Hormuz. Trump reimposed a blockade on Iranian ships transiting the waterway and announced plans to impose shipping fees on all other cargo passing through the strait. Oil prices gained over 2 per cent on the day. The moves prompted concerns among market participants about potential supply disruptions through one of the world's most critical energy shipping routes.

The Strait of Hormuz is a key chokepoint for global oil transport, with substantial volumes of crude passing through daily. Trump's announcement of the blockade on Iranian vessels and the proposed toll system represent a significant shift in US policy toward shipping in the region. The reimposition of restrictions on Iranian traffic marks a return to measures previously implemented during Trump's earlier presidency. Market participants assessed the changes as potentially affecting the supply outlook for crude oil.

Analysts attributed the price movement to heightened concerns about supply security stemming from the new shipping arrangements. The combination of the Iranian blockade and proposed fees on other vessels raised questions about the long-term cost of transiting the strait. Energy markets typically respond to perceived threats to major supply routes, and the Hormuz developments prompted reassessment of near-term price expectations among traders and investors.