Oil prices surge on Trump's blockade vow, failed U.S.-Iran talks

Oil prices surged over 7% to well over $100 per barrel after President Trump announced the U.S. will impose a naval blockade on Iran and the Strait of Hormuz. This declaration followed the failure of peace talks in Pakistan on Sunday morning. The blockade aims to deny Iran leverage and prevent its oil exports, which had been limited by Iran's own toll imposition on the strait. This surge undoes much of the price drop seen after a recent ceasefire deal and will delay relief at U.S. gasoline pumps, where prices currently average $4.13-per-gallon. Eurasia Group analysts predict the U.S. blockade will further discourage shipping through the strait, keeping volumes below 10% of prewar levels.