US blockade of Iranian ports lifts crude 8% and dollar

After U.S.-Iran peace talks in Islamabad collapsed, President Trump ordered a U.S. naval blockade of Iranian ports aimed at cutting off roughly 1 million barrels per day of oil exports. U.S. Central Command said enforcement will begin at 10 a.m. ET (1400 GMT) on Monday and described the operation as “impartial,” targeting vessels attempting to enter or exit Iranian coastal waters. Vice President Vance left Islamabad after talks stalled over U.S. terms.

The administration warned it will intercept any vessel in international waters found to have paid transit tolls to Iran. President Trump said U.S. forces would act against ships that continue such payments. The U.S. military said vessels transiting the Strait of Hormuz to non-Iranian ports will not be blocked. Iran’s Islamic Revolutionary Guard Corps released a statement saying any ship approaching the Strait would be treated as violating the ceasefire.

Brent and WTI futures rose about 7%–8% after the announcement. The pan‑European STOXX 600 fell 0.7% to 610.44 by 0718 GMT, Germany’s DAX dropped about 1%, and the FTSE 100 retreated 0.4%. Energy stocks gained about 0.8%, while travel and leisure fell roughly 1.9%. Banks and industrials slipped about 1.5% and 1%, respectively. The U.S. Dollar Index was up about 0.4%; gold initially moved lower before stabilizing.

Commercial shipping firms said they are awaiting formal notice and face legal and operational uncertainty because of the administration's plan to intercept vessels that pay Iran transit fees. The IRGC statement increases the risk of confrontation near the Strait, a major choke point for oil shipments.

Market participants are monitoring technical levels in the dollar, with traders watching the 99.50 area on the U.S. Dollar Index. Officials and shipping firms expect heightened volatility and headline risk as enforcement begins.