US to block vessels in the Strait of Hormuz

The US Central Command (CENTCOM) has imposed a blockade on vessels entering and exiting Iranian ports, after Washington and Tehran failed to reach a deal.

IMAGE: Strait of Hormuz. Getty Images

The announcement comes as 21 hours of discussions between Iranian and US negotiators in Pakistan failed to yield any positive outcome, Reuters reported.

Iran has refused to “give up its nuclear ambitions,” US President Donald Trump said in a social media post. Washington will “begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” from 10:00 ET (14:00 GMT) today, Trump added.

Brent crude’s price broke above $100/bbl following the development as concerns about the freedom of navigation through the Persian Gulf region escalated – effectively eroding hopes of a ceasefire deal.

The blockade will be enforced “impartially" against vessels entering or departing Iranian ports, "including all Iranian ports on the Arabian Gulf and Gulf of Oman," the US CENTCOM said in a statement.

“CENTCOM forces will not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports,” it added.

Iranian officials have rebuked Washington’s comments, warning that US military presence near Iranian waters will be treated as a violation of the ceasefire, Al Jazeera reported.

“Oil markets rallied sharply on Monday after US-Iran talks collapsed over the weekend,” two analysts from ING Bank noted.

Further escalation and delays are likely to push oil prices higher, analysts said, although the oil market may grow increasingly desensitised to announcements lacking concrete outcomes.

By Aparupa Mazumder

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