Trump Orders Strait Of Hormuz Blockade After Failed US-Iran Talks, Could Spike Oil Prices By $10

Washington: President Donald Trump said the US Navy would swiftly begin a blockade of ships entering or leaving the Strait of Hormuz, after US-Iran ceasefire talks in Pakistan ended without an agreement. US Central Command announced that it will blockade all Iranian ports beginning Monday at 10 am EDT or 5:30 pm in Iran.

CENTCOM said the blockade will be “enforced impartially against vessels of all nations.” It said it would still allow ships travelling between non-Iranian ports to transit the Strait of Hormuz. Earlier in the day, the United States and Iran ended 21 hours of face-to-face talks in Islamabad without reaching a deal, leaving the fate of the fragile, two-week ceasefire still unclear.

The war that has killed thousands of people and shaken global markets has entered its seventh week. Trump says he doesn't care when Iran returns to the negotiating table. Speaking to reporters outside Washington after flying back from Florida, Trump was asked how long it might be before Iranian officials returned to the negotiating table amid a fragile ceasefire. “I don't care if they come back or not,” he replied. “If they don't come back, I'm fine,” Trump said during weekend negotiations led by US Vice President JD Vance, Iran said they were pushing for a nuclear weapon.

“They still want it, and they made that clear the other night. Iran will not have a nuclear weapon,” he said. Energy expert says oil price could jump by $10. Brent crude oil, the international standard, has gone from roughly $70 per barrel before the war in late February to more than $119 at times. Brent for June delivery fell 0.8% to $95.20 per barrel on Friday.

Michael Lynch, distinguished fellow at Energy Policy Research Foundation, estimates Trump's threatened blockade could boost oil prices $5 to $10 when the market opens on Monday. The blockade would take an estimated 2 million barrels of oil per day off the market, and the Iran war has already taken roughly 10 million barrels per day out of supply, Lynch said. “This is a pretty big insult to a pretty big injury, I guess, is the way to put it,” he said.

But Lynch said the blockade might be short-lived as Trump will be pressured to walk it back. “I wouldn't be surprised to see him to give it up by midweek, especially if oil prices keep going up,” he said.

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