US maritime blockade of Iranian ports escalates geopolitical tensions. Following failed negotiations in Islamabad, the U.S. military begins enforcing a blockade of all Iranian maritime traffic starting Monday, jeopardizing a fragile two-week ceasefire. The move triggered immediate market reactions: the dollar strengthened, oil prices surged above $100 per barrel, and U.S. stock futures declined. President Trump warned that oil and gasoline prices may remain elevated through midterm elections. The blockade targets vessels entering or exiting Iranian ports while allowing non-Iranian traffic through the Strait of Hormuz, which handles approximately 20 percent of global energy supplies. Tanker operators are already rerouting away from the waterway ahead of enforcement. Iran has warned of a harsh response, accusing the U.S. of maximalism in negotiations.
