Trump reinstates Iran port blockade and imposes 20% charge on cargo passing through Hormuz

Michael Race
Business and economics reporter

US stock markets have fallen in morning trading on Monday as
investors react to the escalating situation in the Middle East.

All three of the main indexes, the Dow Jones, Nasdaq and S&P
500, are down amid fears of inflation, with oil prices climbing more than 4% to
around $79 (£59) a barrel for Brent crude, the global benchmark.

The US and Iran renewed attacks over the weekend and Tehran said it had
closed the Strait of Hormuz, a key waterway used in global trade.

However,
President Trump says the strait will remain open and that he will reinstate a
blockade on Iranian ports, which he claims will stop “Iran’s ships or customers from
entering or leaving”, but be open for other countries which will be
required to pay a 20% cargo charge.

Concerns over global oil supplies since the outbreak of the war
have led to prices becoming volatile. While they have risen on the latest news,
they remain well below where they were in May.

The US stock markets are also being affected by a tough start to
the month for technology and microchip firms, with investors continuing to grapple over high valuations and concerns of an AI bubble. Shares in Nvidia,
SpaceX and Intel were all in the red in early trading.