Iran Closes Hormuz; Trump Warns, Talks Continue

Iran closed the Strait of Hormuz to US-flagged vessels, prompting President Donald Trump to warn that Washington cannot be blackmailed, while simultaneously characterizing ongoing nuclear talks with Tehran as going 'very good.' The dual posture, escalatory rhetoric paired with continued diplomacy, reflects the administration's stated strategy of applying maximum pressure without breaking the negotiating channel. Trump indicated a fresh announcement was forthcoming later in the day, suggesting a policy move or response was being prepared even as talks remained active. The Strait of Hormuz is the world's most critical oil chokepoint, with roughly 20 percent of global petroleum supply transiting it daily. Any sustained closure or credible threat to passage raises immediate freight and insurance costs, pressures crude prices, and forces tanker operators to reprice risk exposure across the region. Markets will watch the scheduled announcement closely for signals on whether Washington responds with sanctions, naval posture changes, or a diplomatic ultimatum, each carrying distinct consequences for energy markets and the broader Iran negotiation timeline.