On Sunday, U.S. President Donald Trump stated that the U.S. Navy would swiftly begin blocking ships from entering and leaving the strategically important Strait of Hormuz, following the failure of ceasefire talks between the U.S. and Iran in Pakistan to reach an agreement.

U.S. Central Command (CENTCOM) has announced that, from 10:00 a.m. EDT on Monday (5:30 p.m. Iranian time), the blockade will apply to all Iranian ports, imposing a neutral blockade on vessels from all nations.

However, CENTCOM has stated that it will continue to allow ships travelling between non-Iranian ports to pass through the Strait of Hormuz.The US embargo could further disrupt global energy markets. Following the announcement of the blockade, oil prices rose during early trading. U.S. crude rose by 8% to $104.24 per barrel, whilst the international benchmark, Brent crude, rose by 7% to $102.29 per barrel. Prior to the outbreak of war in late February, Brent crude was trading at around $70 per barrel.