Yet another roadblock in the Iran war has begun with President Donald Trump proposing a 20% fee on cargo passing through the Strait of Hormuz, CNBC reported.
According to the report, the fee would threaten the global oil surplus, especially if fighting is renewed and closes the strait again.
Analysts said the levy would upend surplus forecasts made earlier this month. The market has been acting on stronger oil supplies, but those surpluses could now be in jeopardy.
If the levy is enacted, it could add about $16 to a barrel of oil shipped through the strait.
The price per barrel as of Tuesday morning hovered just below $80 per barrel.
