US-Iran Tensions Escalate: Blockade Of All Iranian Ports in Hormuz Begins; What It Means for Oil, Gas & India

The US- Iran war is in its 44th day, and the crisis in the Strait of Hormuz has escalated dramatically today after US President Donald Trump announced that the US military will block all maritime traffic entering and exiting Iranian ports, starting at 10 am ET or 14:00 GMT today, as Iran has warned of even higher prices at the pump.

US Central Command, CENTCOM, confirmed the blockade applies to "all maritime traffic entering and exiting Iranian ports" including vessels of all nations entering or departing Iranian ports across the Gulf and the Gulf of Oman.

However they clarified that US forces will not stop the movements for vessels transiting the Strait of Hormuz to and from non-Iranian ports.

The Reason Behind the Blockade

The blockade is a direct consequence of the failure of peace negotiations in Pakistan over the weekend.

The US and Iran couldn't reach an agreement in face-to-face peace talks in Islamabad, according to Vice President JD Vance, who led the US delegation. The two sides met for more than 21 hours. Vance said the Iranians "have chosen not to accept our terms" and that direct talks were over.

Peace talks broke down over what the US described as Iran's unwillingness to give up its efforts to obtain a nuclear weapon. Tehran's demands included control of the Strait of Hormuz, payment of war reparations, a ceasefire across the region including in Lebanon, and the release of frozen assets abroad.

Trump's reaction was fast. In a post on Truth Social, Trump said: "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 also instructed the Navy to "seek and interdict every vessel in International Waters that has paid a toll to Iran" and to begin "destroying the mines the Iranians laid in the Straits." He added: "Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

Iran's Response

Tehran was not quiet. Iran's armed forces said the US "imposition of restrictions on the movement of vessels in international waters is an illegal act and amounts to piracy."

Iran's Islamic Revolutionary Guard Corps warned that any approaching military vessels would be considered in violation of the ceasefire meant to be in effect until April 22 and "will be dealt with severely."

The status of the two-week ceasefire is now in serious doubt.

What This Means for Oil, Gas Prices & India

The blockade is pouring fuel, literally, on an already rising energy crisis. Crude prices are currently trading 7.91% higher to $104 per barrel on Monday, recovering from last week's losses after President Donald Trump's Strait Blockade Update.

Trump is also considering resumption of limited military strikes on Iran in an attempt to break the peace talk stalemate, according to the Wall Street Journal.

For India, today's blockade could be devastating as India was one of the few nations granted safe passage through the Strait of Hormuz by Iran. A total of 9 India-flagged LPG vessels have safely crossed the strait so far after the war began.
If Trump goes forwards through this blockade, that passage could close off entirely.

To manage the already low gas supplies, New Delhi had previously been forced to prioritize households over the commercial sector, which led some restaurants on the brink of shuttering and cutting the industrial profits for companies dependent on natural gas.

The Asian Development Bank has already predicted that growth in the Asia-Pacific region would slow to 5.1% in 2026, with regional inflation rising to 3.6%. The bank warned that "a prolonged conflict in the Middle East is the single biggest risk to the region's outlook."