Tariff threats and oil spike
Reports say the U.S. has blockaded the Strait of Hormuz and President Trump threatened steep tariffs—he even floated a possible 50% tariff on China—which coincided with oil topping $100 a barrel amid live market uncertainty. Coverage ties the trade and geopolitical measures to a commodity‑price shock and ongoing legal questions about the president’s global 10% tariff. (cnbc.com; theguardian.com; cnn.com; ctvnews.ca)
Oil jumped above $100 a barrel on Monday, April 13, after the United States moved ahead with a blockade tied to Iran and President Donald Trump threatened new tariffs on China. (cnbc.com) Trump said on Sunday, April 12, that the United States would blockade the Strait of Hormuz after weekend talks in Pakistan failed to produce a deal to end the Iran war. NBC News reported the blockade took effect at 10 a.m. Eastern time on Monday and said ships traveling between non-Iranian ports could still transit the waterway. (cnbc.com; nbcnews.com) Brent crude rose more than 8% in early trading and moved above $100 a barrel as markets priced in the risk of disrupted shipments through the Gulf. CNBC reported Trump also threatened a possible 50% tariff on China after reports that Beijing could send air-defense systems to Iran. (energynow.com; cnbc.com) The Strait of Hormuz is a narrow shipping lane between the Persian Gulf and the open ocean, and about 20 million barrels a day of oil and petroleum products moved through it in 2025. The International Energy Agency said that volume made the strait one of the world’s most critical oil chokepoints. (iea.org) The United States Energy Information Administration said flows through Hormuz in 2024 and early 2025 accounted for more than one-quarter of global seaborne oil trade and about one-fifth of world oil and petroleum product consumption. The agency also said roughly one-fifth of global liquefied natural gas trade passed through the same route in 2024. (eia.gov) That is why the price move spread beyond crude. The United Nations Conference on Trade and Development said last month that Hormuz also carries significant volumes of liquefied natural gas and fertilizers, raising risks for energy costs, shipping, and import-dependent economies when traffic is disrupted. (unctad.org) The tariff threat landed while Trump’s separate 10% global tariff is already under court review. Reuters, via multiple outlets, reported that a three-judge panel of the United States Court of International Trade heard arguments on Friday, April 10, in a case brought by 24 mostly Democratic-led states and two small businesses challenging the tariff. (pbs.org; politico.com) The challengers say the February 24 tariff sidesteps a Supreme Court ruling that struck down most of Trump’s earlier sweeping tariffs. Politico reported the administration argues the president can still use emergency powers to impose the new import tax. (politico.com; pbs.org) For traders on April 13, the immediate question was not only whether oil could stay above $100, but whether a military chokepoint and tariff escalation would hit energy, shipping, and import prices at the same time. (cnbc.com; iea.org)
