US Blockade: Tankers Turn Back as Crude Oil Surges 4%

Two oil tankers have turned back from the Strait of Hormuz as the US blockade against Iranian ports takes effect. Brent crude oil jumps over 4%, closing at $99.36 a barrel. The blockade started at 2 p.m. GMT, affecting vessels from all nations, but allowing transit to non-Iranian ports. The Malawi-flagged tanker Rich Starry quickly reversed course after departing from the UAE, while the Botswana-flagged Ostria followed suit shortly after. Just half an hour after the blockade began, former President Trump issued a warning on social media, threatening severe consequences for any ships approaching the blockade. Meanwhile, Iran’s Revolutionary Guard signaled that any military presence in the strait would be met with a strong response. This situation has left over 1,300 vessels stranded and 20,000 mariners trapped near the busy waterway. Gas prices in the US are already averaging $4.12 per gallon, a rise of more than $1.20 since the conflict began. The bottom line? This blockade could lead to even higher energy prices for everyday Americans.