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.

Within a 24-hour window, Trump said he was “optimistic” about a deal with Iran — and then threatened Tehran over fees being charged in the Strait of Hormuz.

He also accused Iran of doing a “poor job” of letting energy supplies flow. Karoline Leavitt called reports of Iran closing the strait “completely unacceptable,” though she also said ship traffic had actually been increasing and the Iranian state media reports were “false.”