Oil Soars Past $100 as Trump Orders Hormuz Blockade, Markets Plunge

Brent Crude prices jumped by 6.81 per cent to reach USD 101.68 per barrel. Similarly, West Texas Intermediate (WTI) crude oil rose by 7.97 per cent, trading at USD 104.26.

In a statement released on Truth Social, President Trump confirmed that the United States Navy would begin intercepting vessels in the region immediately to prevent Iran from profiting from the passage.

"Effective immediately, the United States 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," Trump stated.

The President indicated that while the goal is to return to a status where all ships are allowed passage, the current blockade is necessary due to Iranian actions and claims regarding maritime mines.

"At some point, we will reach an 'ALL BEING ALLOWED TO GO IN, ALL BEING ALLOWED TO GO OUT' basis, but Iran has not allowed that to happen by merely saying, 'There may be a mine out there somewhere,' that nobody knows about but them. THIS IS WORLD EXTORTION, and Leaders of Countries, especially the United States of America, will never be extorted," the President said.

Financial markets reacted to the heightened geopolitical tension as trading opened for the week. Dow Jones Futures fell by 344.57 points, or 0.72 per cent, to 47,572.00. While the Nasdaq and S&P 500 had closed with marginal gains in the previous session on April 11.

The President further highlighted that the US Navy has orders to interdict vessels that have complied with Iranian demands for tolls in international waters.

"I have also instructed our Navy to seek and interdict every vessel in International Waters that has paid a toll to Iran. No one who pays an illegal toll will have safe passage on the high seas. We will also begin destroying the mines the Iranians laid in the Straits," Trump added.

Trump also suggested that other nations would be involved in the operation to ensure the blockade remains effective.

"Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL! Iran knows, better than anyone, how to END this situation which has already devastated their Country. Their Navy is gone, their Air Force is gone, their Anti Aircraft and Radar are useless, Khomeini, and most of their 'Leaders,' are dead, all because of their Nuclear ambition," the statement read.

The US administration maintained that the military remains prepared for further engagement if the situation escalates beyond the blockade.

"Additionally and, at an appropriate moment, we are fully 'LOCKED AND LOADED,' and our Military will finish up the little that is left of Iran!" Trump stated.

- ANI