Trump Notifies Congress of Resumed War With Iran, Oil Surges
Trump formally notified Congress that US military action against Iran resumed on July 7, restarting the War Powers clock. A reinstated Strait of Hormuz blockade sent Brent up nearly 10% in a single session.
President Donald Trump has formally told Congress the U.S. is once again at war with Iran, restarting the 60-day War Powers clock and reigniting the fight over the Strait of Hormuz. Oil ripped higher on the news, and traders are now repricing energy, defense, and macro risk across the board.
What Trump told Congress
Trump formally notified lawmakers this weekend that the nation is once again at war with Iran, giving his administration another 60-day clock to use the military in the region without congressional approval.
In a letter to Congress dated July 10, Trump stated that the strikes that began on July 7 represent “military action consistent with my responsibility to protect Americans and United States’ interests both at home and abroad.” Ground forces were not involved, and Trump wrote that the strikes are “limited, measured, planned, and executed in a manner designed to minimize civilian casualties.”
The U.S. military struck over 300 targets inside the country, according to Centcom, with the most recent barrage coming on Sunday.
The Strait of Hormuz is the trade
The latest notification comes as the two countries fight over control of the Strait of Hormuz, a key international passageway through which around 20 percent of the world’s oil and gas typically flows.
Trump moved to turn up the pressure on Iran Monday, announcing the reinstatement of the naval blockade in the Strait of Hormuz, which will formally begin Tuesday at 4 p.m. EDT, and demanding the U.S. be “reimbursed” 20 percent on all cargo shipped through the waterway.
That is the single most important detail for markets. A blockade plus a toll on cargo is a direct supply-chain tax on global energy flows.
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Oil’s reaction was violent
Oil prices surged Monday as traders assessed Trump’s announcement that the US will reimpose a blockade of Iranian ports. Brent crude soared 9.59% to settle at $83.30 per barrel, its highest settle level since June 12. Brent posted its biggest single-day percent gain in over six years.
WTI rose about 9.4% to settle at $78.14 per barrel, its highest settle level since June 15, its biggest single-day jump since early April 2026. Prices remain well below their Iran war peaks above $110 per barrel, but have rebounded after declining in recent weeks.
The legal fight in Washington
Under the War Powers Act, after the president notifies Congress, the U.S. military can be in the region for 60 days and the commander-in-chief can extend their stay for another 30 days.
Both the House and Senate passed a war powers resolution last month, seeking to limit Trump’s ability to carry out further military action against Iran without congressional authorization. Democrats have said they’re considering their legal options to force Trump to comply. The president has argued that he is acting under his constitutional authority.
Trump will give a primetime address Thursday, he announced on Truth Social Monday amid heightened hostilities with Iran, at 9 P.M. Eastern. That speech is now the next binary event for risk assets.
Options market and stocks to watch
Energy, defense, and shipping names sit right on the fault line. Watch these tickers into the Thursday address:
- XOM and CVX: integrated majors leveraged directly to a Brent move of this size. Watch call skew and any unusual upside flow.
- USO: the cleanest retail proxy for the crude spike; expect elevated IV and gamma-driven moves.
- LMT and RTX: defense primes benefit from sustained Centcom operations and any restock of munitions inventory.
- SPY: watch for volatility compression to break if the Thursday speech escalates rather than de-escalates; higher oil feeds directly into the inflation and rates story.
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