Following the collapse of US-Iran peace talks, the United States has announced a blockade of the Strait of Hormuz, a crucial global oil shipping chokepoint. Crude oil surged by 7%, climbing back above $100, while US stock futures declined. Gold prices fell by 2.2% at one point, wiping out last week's gains. Bitcoin retreated from its previous high of $73,790 to just above $70,000, leading a broader crypto market downturn that saw the total market capitalization fall back to $2.41 trillion.

US to Blockade Strait of Hormuz

The US Central Command stated on Sunday that the military will blockade all ships entering or leaving Iranian ports, including all Iranian ports in the Arabian Gulf and the Gulf of Oman, starting at 10:00 AM EST on Monday. However, the US will not impede vessels traveling to or from non-Iranian ports.

Trump posted on social media:

"Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz."

Trump stated that the US will intercept any ships paying tolls to Iran for safe passage through the Strait of Hormuz and will clear mines within the strait. The blockade will halt the transport of nearly 2 million barrels of Iranian oil per day through the waterway, further squeezing global oil supplies and cutting off a vital lifeline for Iran.

Sources familiar with the matter revealed that Trump is considering limited strikes on Iran to break the deadlock in peace negotiations.

WTI Crude Surges Over 7%, US Stock Futures Decline

The breakdown of talks in Islamabad over the weekend has reignited concerns that the US-Iran conflict could last longer than expected, driving up oil prices and continuing to pressure the global economy.

Brent crude prices rose 8.4% to $103.24 per barrel; US West Texas Intermediate (WTI) crude futures surged 7.9% to $104.19 per barrel. The Dow Jones Industrial Average closed down 517 points, or 1.1%. S&P 500 futures fell 1.1%, and Nasdaq 100 futures dropped 1.2%.

Gold prices dropped by 2.2% at one point, falling below $4,650 per ounce and erasing last week's gains.

Bitcoin Pulls Back to $70K

Cryptocurrencies experienced a widespread decline, dropping nearly 3% over 24 hours, with the total market capitalization falling back to $2.41 trillion.

Bitcoin retreated from its previous high of $73,790 to hold just above $70,000, while Ethereum also fell from $2,300 to $2,189.

Although Bitcoin ETFs have shown a trend of capital inflows over the past two weeks, derivatives trading activity remains sluggish, indicating that market sentiment is still subdued.

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