The US does not intend to take control over one of the world's most critical energy choke points. After 21 hours of peace talks with Iran in Islamabad, Vice President J.D. Vance left without a deal.

not to accept our terms.

Within hours, President Donald Trump announced a full naval blockade of the Strait of Hormuz through which a fifth of the world's oil and liquefied natural gas transits. Later, he clarified the blockade would only involve ships entering or exiting Iranian ports.

The failed talks left the ceasefire that was clinched last week in limbo. Posting on True Social, Trump said the talks collapsed due to differences over Iran's nuclear ambitions. Iran now says any military vessels attempting to approach the strait will be considered a violation of the ceasefire.

Trump's planned blockade would effectively sever Iran's primary means of exporting oil and likely exacerbate global oil and fuel shortages. It seems potentially less risky alternative to a military operation to seize Kharg Island, Iran's critical oil export hub.

Markets reacted instantly. Global benchmark crude jumped back to around $104 a barrel and gas futures are much higher in Europe.