The United States has announced a naval blockade of all Iranian ports in the Strait of Hormuz, effective from Monday, after weekend ceasefire talks with Iran failed to reach an agreement. The move follows weeks of US-Israeli attacks that have caused significant damage but failed to topple Tehran's regime or end its nuclear ambitions.
The Strait of Hormuz has become Iran's most effective weapon in its asymmetric war with the US. About 20% of the world's oil and gas supply previously moved through this vital waterway, but Iran's effective closure has triggered a global economic crisis. Oil prices have surged, fuelling fears of damaging inflation, while exports of other essential goods, such as fertilisers needed for food production, have collapsed.
President Donald Trump, scrambling to respond to the fallout, threatened on Sunday to impose his own blockade, pushing global markets into further deep uncertainty. The announcement has left markets in turmoil, with questions remaining over how the blockade will be enforced.
