President Donald Trump announced a U.S. blockade of the Strait of Hormuz began Monday, targeting vessels entering or leaving Iranian ports.
Trump claimed 34 ships transited the strait on the previous day, the highest number since the “foolish closure” started.
Iran warned the blockade was an act of piracy and threatened retaliation, while European leaders and the EU called for navigation freedom.
Oil prices rose above $100 per barrel and markets reacted cautiously, with Capital Economics noting potential further market blows.