US counter-blockade sets off battle of wills with Iran

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Oil prices jumped by 7% to more than $100 a barrel on Monday after Saturday’s failed peace summit between the US and Iran. Following the talks, Donald Trump announced the US would impose its own blockade on the Strait of Hormuz against “any and all ships” trying to use the passage. The American military subsequently clarified that the embargo only applied to vessels using Iranian ports. It came into effect yesterday, but it is not clear if the US has intercepted any tankers yet. Since the beginning of the conflict, Iran has shipped more than 58m barrels of crude from its main oil terminal of Kharg Island. Nearly all of it has gone to China. Cutting off this supply line will pile pressure on Tehran but also worsen the global energy crisis.