President Donald Trump announced a naval blockade of the Strait of Hormuz after diplomatic talks with Iran failed to reach an agreement. The measures target all vessels and explicitly include ships receiving passage payments, specifying that payments in cryptocurrencies are subject to restriction.

Details of the order

According to Trump's statement, the navy will identify and intercept vessels involved in passage payments, including in international waters if necessary. The president instructed military authorities to treat payments for transit as grounds for interdiction, expanding enforcement beyond territorial sea limits.

Payment and legal scope

Earlier reports indicated Iran could charge about $1 per barrel for passage through the strait, and that cryptocurrency was accepted as a form of payment. The administration's directive instructs naval forces to flag and seize vessels associated with such payments, subject to applicable international law.

Market reaction

On the escalation, Brent crude rose above $100, reflecting concern over supply through the Strait of Hormuz and increased shipping risks. Cryptocurrency markets showed a muted response, with most volatility occurring earlier after reports of failed negotiations between the two countries.

Officials did not provide a detailed timeline for enforcement, leaving uncertainty about operational specifics and the scope of future naval activity in the region.