Donald Trump announced that the US Navy would impose an “immediately effective” naval blockade of the Strait of Hormuz following the failed peace talks in Pakistan.
In a harsh statement, Trump announced that all shipping traffic in the region would be brought under control, citing Iran’s refusal to back down on its nuclear program.
Trump stated that the US Navy would initiate a process to block all ships entering and exiting the strait, arguing that Iran was demanding “transit fees” from ships and that this constituted “global blackmail.” The US President also stated that ships found to have paid Iran would be stopped in international waters and denied safe passage. The statement added that naval mines allegedly planted by Iran would also be destroyed.
Trump stated that any military intervention from Iran would be met with a very strong response, saying, “If US forces or civilian ships are fired upon, the response will be devastating.” He also claimed that Iran’s military capabilities had been significantly weakened, but added that broader military action could be considered if the Tehran regime did not abandon its nuclear ambitions.
The US President also referred to the US-Iran talks in Islamabad, which lasted approximately 20 hours, saying that progress had been made on many issues but that no agreement had been reached on the nuclear program. The US was represented by Vice President JD Vance, special envoy Steve Witkoff, and Jared Kushner; while Iran was represented by Mohammad-Bagher Ghalibaf, Abbas Araghchi, and Ali Bagheri.
Trump argued that Iran had failed to fulfill its commitment to keep the Strait of Hormuz open, creating significant uncertainty in global trade and energy markets. The tension surrounding this critical waterway, through which a large portion of oil shipments pass, is being closely watched by global markets.
On the other hand, according to data from the forecasting platform Polymarket, the probability of oil prices reaching $110 per barrel in April has risen to 52%.
*This is not investment advice.