The United States launched a naval blockade of Iranian ports at 10:00 a.m. ET on Monday. This action followed the failure of weekend peace talks in Pakistan to reach an agreement. The blockade targets all vessels entering or leaving Iranian ports to eliminate oil revenue and pressure Tehran.
Brent crude prices jumped more than 7% following the announcement. The global benchmark currently trades above $102 per barrel. The Strait of Hormuz serves as a transit point for approximately 20% of the global oil supply. Maritime trackers report that tanker traffic in the region has halted or rerouted.