🇺🇸 President Trump just announced the United States will blockade the Strait of Hormuz.

US futures -1.58% (nice short we gave)
Oil +7.49%
This morning he posted that after peace talks with Iran completely failed the US Navy will start blocking ships from entering or leaving the strait.
The talks in Pakistan broke down mainly because Iran would not agree to strong limits on its nuclear program.
The Strait of Hormuz is one of the most important waterways in the world. About 20 percent of global oil passes through it every day.
Iran has been charging tolls and disrupting traffic there which has already pushed oil prices much higher.
Trump said the Navy will stop vessels that paid those illegal tolls to Iran and warned that any attack on US forces will be met with overwhelming force.
Right now this is in the early stages. The Navy is preparing to enforce the blockade and some allies like the UK are sending support.
What could happen next?
Short term there is a real risk of clashes if Iran tries to challenge the blockade with drones missiles or speedboats.
Oil prices could spike even more causing higher gas costs and economic pressure worldwide.
Longer term this could force Iran back to the table or it could lead to a wider conflict in the region.
This is a serious escalation but the goal is to reopen the strait and stop Iran from controlling this vital route.
The situation is moving fast and the world is watching closely.
Stay safe everyone.
#Trump