Oil Shock Incoming as Iran Tensions Explode

The world woke up this morning to one of the most consequential moves in recent Middle East history: President Donald Trump has ordered a U.S. naval blockade of the Strait of Hormuz, effective immediately.

What Just Happened

After marathon negotiations in Islamabad between the U.S. and Iran collapsed without a deal on Sunday, Trump moved decisively. The U.S. Central Command issued a notice to mariners declaring that unauthorized vessels in the Gulf of Oman and Arabian Sea east of the Strait will be subject to interdiction.