Axios

Oil prices surged about 9% Monday to roughly $83 per barrel after President Trump claimed the U.S. was reinstating a naval blockade on Iran, adding to gains already driven by renewed hostilities over the weekend.

Why it matters: Higher oil prices typically feed into higher gasoline prices, potentially pushing the national average back toward $4 per gallon.

President Trump announced on Monday that the U.S. is reinstating the naval blockade on Iran and will prevent any ships from leaving or entering Iranian ports. The blockade will go into effect on July 14 at 4pm ET.

• Trump also claimed the U.S. would be "reimbursed" at a rate of 20% for securing safe passage for cargo ships, though the details and seriousness of the initiative were not immediately clear.

Why it matters: The blockade — a response to renewed clashes between the U.S. and Iran in recent days — threatens to dramatically escalate tensions in the strait and change the economics of shipping energy and materials in the Middle East.

A federal judge lambasted and penalized the attorneys behind President Trump's settlement with the IRS, saying in an explosive Monday order that the case was a means to an end: judicial cover for a deal granting Trump audit immunity and creating his controversial anti-weaponization fund.

The big picture: The $1.776 billion pot of money, born from the Trump settlement, created an avalanche of bipartisan concern and legal scrutiny.