Geopolitical tensions spike oil markets sharply.

Geopolitical tensions spike oil markets sharply. Following failed US-Iran ceasefire talks in Islamabad, President Trump threatened a naval blockade of the Strait of Hormuz, a critical global shipping route. Iran's Revolutionary Guards responded with warnings of a "deadly vortex" for any aggressor. Oil prices surged immediately, with US crude climbing 8% to $104.24 per barrel and Brent crude rising 7% to $102.29. Analysts note the blockade's practical market impact may be limited since few vessels currently pay Iranian tolls and existing sanctions already restrict trade. However, the geopolitical risk premium has spooked energy markets. Brent crude has volatilized dramatically from $70 in late February to over $119 during the conflict. China called for restraint on all sides.