Benchmark Brent crude spikes over 7% to $126.41 as a US naval blockade on Iran deepens. International Energy Agency warns of a major energy and economic challenge.
President Pezeshkian says any attempt to impose maritime restrictions is contrary to international law. He warns it will fail to enhance security and will disrupt lasting stability in the Persian Gulf.
The US military has fully implemented a naval blockade, reporting that no merchant vessels have successfully bypassed the Strait of Hormuz in the last 24 hours. President Trump warned that any vessels attempting to breach the perimeter would be destroyed as part of “Operation Epic Fury.”
Ambassadors from Israel and Lebanon met in Washington for their first direct negotiations in decades, aiming to establish a permanent border framework. While envoys described the meeting as “productive,” Hezbollah retaliated by launching rockets at 13 towns in northern Israel as the talks began.
President Trump stated that a “grand bargain” to end the conflict is very close and that negotiations with Tehran could resume in Pakistan within two days. Vice President JD Vance emphasized that the US is offering economic prosperity to Iran if it commits to ending its nuclear weapons program.
Brent crude prices fluctuated near $95 as the closure of the Strait of Hormuz continues to disrupt 20% of the world’s oil supply. The IMF slashed regional growth forecasts to 1.1%, warning that a prolonged conflict could trigger a global economic downturn.
US Vice President JD Vance departed Joint Base Andrews for crucial peace negotiations in Islamabad, where he is scheduled to meet with Iranian officials, declaring that “if they’re going to try to play us, they’re going to find the negotiating team is not that receptive.” The talks are being held in Pakistan and are seen as a critical, yet highly fragile, step to secure a lasting regional ceasefire.
A new monthly report showed the largest inflation spike in four years, driven by a surge in gasoline costs, which are now approaching $100 per barrel in some regions due to persistent Middle East instability and doubts about the ceasefire. According to new polling, 69% of US adults now cite rising gas prices as their primary concern, significantly impacting consumer confidence.
In a significant move to control the national technological landscape, the Trump administration has launched an initiative that would use legal and financial pressure to compel states to abandon their own, “onerous and excessive” AI regulations. This sets up an immediate confrontation with several states that have recently passed comprehensive laws on the use of artificial intelligence in hiring and government.