Oil prices spiked above $103 per barrel Monday after President Donald Trump announced a full naval blockade of Iran, escalating tensions following the collapse of ceasefire talks in Pakistan and vowing to force reopen the Strait of Hormuz by force.
Blockade Details
US Navy destroyers transited the strait unchallenged Saturday, but Trump’s order—backed by carrier groups—bars Iranian vessels and mines the chokepoint until Tehran capitulates on nuclear disarmament and shipping freedom. VP JD Vance called it a “final step” after Iran’s “no deal” stance.
Market Chaos
Brent crude jumped 8% intraday, erasing recent gains from prior destroyer passages; WTI hit $98. India faces petrol/diesel hikes of ₹5-7/litre amid Jaishankar’s UAE/Qatar energy diplomacy securing limited LNG flows.
Global Fallout
OPEC+ emergency meets as Saudi Arabia boosts output; China/India stockpile; aviation stocks tumble. Trump eyes “winner’s tolls” on Hormuz passage post-resolution.
