Oil prices are on the rise again after President Donald Trump over the weekend ordered a blockade of the Strait of Hormuz — which typically sees about 20% of the world's oil pass through it.
U.S. Central Command announced that it will blockade all Iranian ports beginning Monday at 10 a.m. ET. Trump also ordered the U.S. Navy to seek and interdict any vessel that has paid a toll to Iran for safe passage through the strait. The move suggests tensions between the U.S. and Iran may be getting worse after peace talks between the two sides failed to produce a deal.
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"I think Iran is in very bad shape. I think they're very desperate. We had a meeting that lasted 21 hours. We understand the situation better than anybody," Trump told reporters Sunday night.
"There is only one thing that matters — IRAN IS UNWILLING TO GIVE UP ITS NUCLEAR AMBITIONS!" he added in a post on his Truth Social platform.
U.S. Central Command said the blockade "will be enforced impartially against vessels of all nations entering or departing Iranian ports." It added that U.S. forced "will not impede" vessels traveling to and from non-Iranian ports.
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Both oil and gas prices have seen increases in the hours after the order as uncertainty abounds for the current ceasefire in Iran and what may happen next in the Middle East. The Wall Street Journal reported that Trump is considering resuming limited strikes on Iran. In the meantime, Iran's parliamentary speaker warned Americans will continue to face high gas prices.
"Enjoy the current pump figures. With the so-called 'blockade,' Soon you'll be nostalgic for $4-$5 gas," he said in a post on social media.
