Oil jumps as Trump vows Hormuz blockade

President Donald Trump said on Monday he would reinstate a blockade on Iranian shipping through the Strait of Hormuz, a move that sent oil prices higher while US stock futures were little changed. Officials said investors were also watching a heavy calendar of corporate earnings and upcoming inflation readings this week.

Trump's Hormuz announcement

The president's statement immediately raised concern about disruptions to seaborne crude flows from the Gulf and renewed focus on maritime security in a critical shipping corridor. Traders pushed oil higher on the prospect of tighter supply and higher freight costs; officials said markets priced in an elevated risk premium for energy assets.

Market participants kept equity futures subdued even as oil climbed, reflecting a split view: energy and defence-related names gained on risk repricing while broader indices reflected caution ahead of data. Officials said liquidity in some markets thinned as traders weighed geopolitical risk against scheduled corporate results.

Shipping firms and insurers are likely to reassess routing and cover, which could lift costs for energy firms and refiners if the situation endures. Officials said companies with heavy exposure to Middle East logistics would be among the most immediately affected.

Investors will monitor US CPI on July 15, 2026, for inflation signals that could change rate expectations and amplify the market impact of any sustained disruption at the Strait of Hormuz.