Strait of Hormuz Blockade Intensifies Tensions as Oil Prices Jump to USD 104

The US-Iran war reached day 44 as Washington widened pressure around the Strait of Hormuz. US President Donald Trump said the US military would block shipping linked to Iranian ports. The move began at 10 am ET, or 14:00 GMT, on Monday. Iran had already warned motorists could face even higher fuel prices.

US Central Command confirmed the order covered "all maritime traffic entering and exiting Iranian ports" across the Gulf and Gulf of Oman. The command also said US forces would not halt ships using the Strait of Hormuz for non-Iranian ports. Markets reacted fast, as traders weighed supply risks against prior price losses.

Crude prices jumped after the Strait of Hormuz blockade announcement. On Monday, crude traded 7.91% higher at $104 per barrel. The rise followed a recovery from last week’s declines. The price move also reflected concern about wider disruption in the region’s key shipping lanes.

Indicator	Latest level	Move	Day noted
Crude price	$104 per barrel	Up 7.91%	Monday

For India, the Strait of Hormuz blockade raised fresh supply worries. India had been among few nations Iran granted safe passage through the strait. After the war began, 9 India-flagged LPG vessels crossed safely. If the US plan continues, that route could shut for India-linked shipments.

India had already faced tight gas availability before this escalation. New Delhi had prioritised household supply over commercial users. That decision left some restaurants close to shutting. It also reduced industrial profits for companies dependent on natural gas. Any new shipping limits could increase stress across fuel, freight, and input costs.

Strait of Hormuz blockade after peace talks failed

The blockade followed failed peace negotiations in Pakistan over the weekend. The US and Iran met face-to-face in Islamabad for more than 21 hours. Vice President JD Vance led the US delegation. Vance said the Iranians "have chosen not to accept our terms" and that direct talks were over.

Washington said talks collapsed over Iran’s alleged refusal to abandon nuclear weapons aims. Tehran also set out demands during negotiations. These included control of the Strait of Hormuz and payment of war reparations. Iran also sought a regional ceasefire, including in Lebanon. Another demand was releasing frozen assets abroad.

Trump detailed planned enforcement in a Truth Social post. Trump said: "Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz." Trump also told the Navy to "seek and interdict every vessel in International Waters that has paid a toll to Iran". Trump ordered "destroying the mines the Iranians laid in the Straits." Trump added: "Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

Strait of Hormuz blockade and Iran response

Iran’s armed forces rejected the US action and warned of retaliation. Iran said the US "imposition of restrictions on the movement of vessels in international waters is an illegal act and amounts to piracy." The Islamic Revolutionary Guard Corps said approaching military vessels violated the ceasefire until April 22 and "will be dealt with severely."

The ceasefire’s status now appeared uncertain amid threats and countermeasures. The Wall Street Journal reported Trump was considering resuming limited strikes on Iran. The report linked the idea to breaking the peace talk stalemate. Investors also watched for shipping disruptions beyond Iran-linked routes, given the strait’s role in global energy flows.

Regional institutions flagged wider economic risks from prolonged conflict. The Asian Development Bank projected Asia-Pacific growth would slow to 5.1% in 2026. It also forecast regional inflation rising to 3.6%. The bank warned that "a prolonged conflict in the Middle East is the single biggest risk to the region's outlook."