LONDON – Iran’s naval blockade officially started late Monday despite ceasefire between Tehran and Washington. The fragile ceasefire between both arch-rivals seemed to hang by a thread. Instead of cooling the confrontation, the latest move signaled a dangerous new phase in the standoff, with both sides holding firm and neither willing to back down.
The world’s energy markets and diplomatic channels were thrown into turmoil as US moved ahead with a sweeping naval blockade in the Strait of Hormuz, escalating its confrontation with Iran following the collapse of high-stakes peace talks in Pakistan.
Oil prices rocketed back above $100 barrel as traders reacted in panic to US President Donald Trump’s announcement of maritime embargo targeting “any and all ships” attempting to enter or leave the strategically vital waterway. The move immediately intensified fears of a global energy shock.
The confusion followed Washington’s declaration. While Trump’s Truth Social post described total shutdown of traffic through Hormuz, US Central Command appeared to signal a more limited operation, saying that naval forces would begin stopping vessels entering and exiting Iranian ports from 10 a.m.
The escalation comes just hours after fragile diplomatic effort collapsed in Pakistan, where US and Iranian officials had engaged in 21 hours of intense negotiations led by Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Ghalibaf. Mediators said progress had been made on multiple issues before talks abruptly broke down over the weekend.
Despite the failure, Pakistani officials insisted diplomacy was not dead. Prime Minister Shehbaz Sharif told his cabinet that “full efforts” were still underway to prevent further escalation and contain the crisis.
Back-channel diplomacy may also still be active. Former Pakistani ambassador Maleeha Lodhi suggested that quiet communication between Washington and Tehran would likely continue, even if formal talks had stalled.
Oil futures surged above $105 a barrel as investors braced for possible disruption to one of the world’s most critical shipping routes.
‘Ceasefire Still Holds’: PM Shehbaz reiterates Pakistan’s Key Role in cooling down US-Iran tensions
