Oil prices surged on Tuesday after U.S. President Donald Trump announced plans to impose shipping fees in the Strait of Hormuz.
Trump stated that the U.S. will charge a fee of 20% on all cargo shipped through the Strait of Hormuz.
The announcement raised concerns over potential disruptions to global crude supplies as Trump also indicated the reinstatement of a blockade on Iranian ports.
U.S. West Texas Intermediate futures for August delivery jumped 3.07% to $80.56 per barrel.
International benchmark Brent crude futures for September delivery climbed 2.69% to $85.54.
Citi warned that Trump's proposal could materially increase the risk of further military escalation.
