Trump’s Hormuz blockade threat after failed Iran talks raises fears of wider war, higher oil prices and fresh global economic disruption.
A large cargo ship arrives from China carrying hundreds of containers with imported goods at the Port of Rosario in Rosario, Argentina, on Wednesday, Dec. 17, 2025. Argentina is expected to release trade balance figures on December 18. Photographer: Sebastian Lopez Brach/Bloomberg
US President Donald Trump’s threat to blockade the Strait of Hormuz after talks with Iran collapsed over the weekend risks widening a war now entering its seventh week, lifting oil prices and raising the prospect of further economic pain around the globe.
The US military said it would implement a blockade of all maritime traffic entering and exiting Iranian ports at 10 a.m. on Monday Washington time, adding that it would allow other vessels to transit the Strait of Hormuz if they’re not stopping in the Islamic Republic. Iran’s military adviser to the supreme leader, Mohsen Rezaee, has said the nation “will not allow” such an embargo and says it has “great untapped leverage to counter it.”
The fresh showdown came after the US and Iran failed to reach a deal in marathon talks in Pakistan, jeopardizing a ceasefire reached last week that raised hopes of a quick resolution to the war. The negotiations, led by US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, broke down due to differences over the future of Iran’s nuclear program.
Trump told reporters on Sunday evening that he didn’t care if Iran returned to the negotiating table, arguing the US had already achieved its military objectives, including depleting the nation’s capability to manufacture missiles and drones.
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