US-Israel-Iran War News Live Updates: US says it has completely halted economic trade going into and out of Iran by sea

The United States has imposed a naval blockade on maritime traffic entering and exiting Iranian ports, stepping up pressure on Tehran as US forces say they will intercept or divert vessels operating along Iran’s coastline.

Washington says international shipping not linked to Iran will continue to be allowed through the Strait of Hormuz, even as military activity in the region intensifies.

US naval assets have been deployed to monitor and control access to Iranian ports, with the aim of restricting Tehran’s oil export routes, a key source of revenue, as part of broader economic pressure during the ongoing conflict.

The move follows the failure of marathon negotiations in Islamabad, led by Vice President JD Vance, which ended without agreement. Washington blamed Tehran’s refusal to abandon its nuclear programme, while Iran accused the US of “maximalism, shifting goalposts, and blockade.” The breakdown has left a fragile ceasefire hanging in the balance and revived fears of a broader regional conflict.

President Trump reinforced the hardline stance, announcing that the US Navy would enforce the blockade and warning of severe retaliation against any hostile actions. "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," he said. He further warned, "Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

Iran responded with strong rhetoric, with its Islamic Revolutionary Guard Corps warning that "any miscalculated move will trap the enemy in the deadly whirlpools in the Strait." Tehran also asserted that it retains full control over the Strait of Hormuz, a critical global energy chokepoint through which roughly 20 per cent of the world’s oil and gas supplies pass.

Financial markets reacted sharply to the developments. Oil prices surged, with Brent crude and US benchmarks rising above $100 per barrel, while global equities declined amid heightened uncertainty. Asian markets fell broadly, and safe-haven assets such as the US dollar gained, reflecting investor anxiety over prolonged disruption to energy supplies. Inflation concerns also resurfaced, with rising oil prices expected to put pressure on global economies and central bank policies.

Analysts warned that the blockade could be seen as a de facto continuation of hostilities. Experts pointed to the risk of further escalation, including potential strikes on energy infrastructure, which could have lasting consequences beyond the immediate conflict.

Meanwhile, international voices, including Australia, called for restraint and urged both sides to resume negotiations. Regional tensions also remained high, with continued hostilities involving Israel and Lebanon underscoring the fragile security environment.

Overall, the blockade signals a shift from diplomatic engagement to economic and military pressure, raising the stakes in an already volatile region and increasing the risk of wider geopolitical and economic fallout.