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July 13 (Reuters) - Oil futures surged nearly 9% on Monday and equities fell as conflict between the United States and Iran re-ignited over the weekend, once again throttling the flow of goods through the key Strait of Hormuz.
Over the weekend, Tehran had said it closed the strait, a vital global artery for oil-and-gas shipping.
President Donald Trump responded Monday by saying the U.S.
was reinstating its blockade of Iranian shipping in the Gulf.
Trump also promised to keep the strait open for a fee, though the U.S.
has not been able to wrest control of the waterway from Iran since the outset of the war at the end of February.
The revival of the blockade jolted oil markets that had already been rallying after the two sides had exchanged missile and drone attacks over the weekend.
crude settled up 9.4%, or $6.73, to $78.14 a barrel while Brent settled at $83.30 per barrel, up 9.6%, or $7.29.
"The trading of bombs between the United States and Iran is front and center," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"It's more of the same uncertainty surrounding where the Middle East stands.
What's going to resolve it and when is it going to be resolved?" MSCI's gauge of stocks across the globe fell 10.26 points, or 0.9%, to 1,116.28.
On Wall Street, the Dow Jones Industrial Average fell 138.37 points, or 0.3%, to 52,498.64, the S&P 500 fell 60.05 points, or 0.8%, to 7,515.34 and the Nasdaq Composite ended the session down 408.43 points, or 1.6%, at 25,873.18.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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