US-Iran ceasefire: US moves to blockade Iranian ports as Strait of Hormuz traffic halts, oil prices surge

Oil prices resumed their climb and Asian markets mostly declined as the US military prepared to blockade ships entering or leaving the Strait of Hormuz, where most shipping has been stalled by Iran since the start of the war.

Oil prices have been rising as shipping through the strait has essentially stalled since late February. Brent crude oil, the international standard, has gone from roughly $70 per barrel before the war in late February to more than $119 at times.

On Monday, benchmark US crude jumped $8.38 or 8.7% to $104.95 a barrel. Brent crude, the international standard, rose $7.00, or 7.4%, to $102.23 a barrel.

Japan's benchmark Nikkei 225 lost 1.0% in morning trading to 56,357.40. Australia's S&P/ASX 200 shed 0.5% to 8,913.50. South Korea's Kospi dipped 1.1% to 5,795.15. Hong Kong's Hang Seng slipped nearly 1.5% to 25,513.42, while the Shanghai Composite fell 0.2% to 3,976.57.

Dubai: Gold’s sharp March decline has caught investors off guard, coming at a time when geopolitical tensions and inflation risks would typically support prices, yet the move was driven less by fundamentals and more by a rapid unwind of leveraged positions across markets. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Gold’s slide unfolded during the first three weeks of March, in what the World Gold Council describes as a counterintuitive but familiar pattern during periods of stress.

Read our full story here.

Lebanon’s Ministry of Health says the number of people killed since the start of the Israeli offensive on March 2 has risen to 2,055.

It added that at least 6,588 people have been injured in the ongoing escalation.

Australian Prime Minister Anthony Albanese has announced he will visit regional neighbors in his efforts to secure fuel supplies threatened by the Iran war.

Albanese visited Singapore last week and said on Monday he would visit Brunei and Malaysia this week to “ensure Australia’s energy supply remains secure during times of uncertainty.”

The three Southeast Asian countries are major suppliers of Australia’s gasoline, diesel and jet fuel. Singapore and Malaysia also buy Australian liquefied natural gas.

Albanese will meet Brunei’s Sultan Hassanal Bolkiah and Malaysian Prime Minister Anwar Ibrahim in visits between Tuesday and Friday.

Albanese told reporters in the Australian capital Canberra on Monday he would not preempt outcomes of those meetings.

Trump said that Iran was in "very bad shape" and "pretty desperate," as he confirmed a planned blockade would take effect within hours.

Speaking to reporters on the tarmac after returning from Miami, Trump said a ceasefire in the region was "holding well," but signalled no softening in Washington's position ahead of the blockade set to begin at 10 a.m. Monday.

"The blockade will go into effect tomorrow at 10 am," Trump said, adding that "there are many boats heading toward our country to fill up with oil."

He indicated that other countries were cooperating with efforts to curb Iran's oil sales, though he did not identify them. "Other nations are working so that Iran cannot sell oil," he said.

Donald Trump has said two US airmen rescued after their fighter jet was shot down over Iran earlier this month are in good condition.

Speaking at Joint Base Andrews, Trump said: “They are in very good shape and we’re very proud of them.”

The crew included the pilot, who was located shortly after ejecting from the aircraft, and a weapons-system officer who survived for more than 24 hours while hiding in mountainous terrain before being rescued.

Both sustained injuries during the incident but are now reported to be recovering.

Donald Trump has said Iran still wants to develop a nuclear weapon, claiming the intention was made clear during recent talks in Islamabad.

“They still want it, and they made that clear the other night. Iran will not have a nuclear weapon,” Trump told reporters.

He added that direct negotiations with Tehran failed because Iran was “unwilling to give up its nuclear ambitions,” following marathon discussions that ended without agreement.

The remarks come amid heightened tensions after renewed diplomatic efforts failed to produce a breakthrough on Iran’s nuclear programme.

Mohsen Rezaei, a military adviser and a former Revolutionary Guard Commander, joined the chorus of Iranian officials vowing to counter the US blockade of the Strait of Hormuz.

In a post on X, Rezaei said the country’s armed forces had “major untouched levers” to counter a Hormuz blockade. He said Iran would not be coerced by “tweets and imaginary plans.”

Trump he does not care if Iran comes back to negotiations with the United States after talks in Pakistan failed to produce a deal.

"I don't care if they come back or not. If they don't come back, I'm fine," Trump told reporters at Joint Base Andrews in Maryland, upon his return from Florida.

Trump attacked Pope Leo XIV on social media Sunday, saying the first American pope should “stop catering to the Radical Left.”

It was an extraordinary broadside against the global leader of the Catholic Church, exacerbating a feud that began over the war in Iran.

A short time later, speaking to reporters after Air Force One landed outside Washington from Florida, Trump said, “We don’t like a pope who says it’s OK to have a nuclear weapon.”

“I don’t think he’s doing a very good job,” Trump said, adding that “I’m not a fan of Pope Leo.”

Lloyd’s List Intelligence wrote Sunday that “all traffic” through the Strait of Hormuz stopped after the president announced that the U.S. would blockade the waterway. It said two vessels that were leaving the strait turned around.

A trickle of traffic had returned to the strait in the days since the U.S. and Iran agreed to pause the conflict.

Oil prices jumped in early trading Monday, with US and global benchmarks climbing sharply amid heightened tensions in the Middle East and investor concern over potential supply disruptions through key shipping lanes.

As of 7:19 am (Asia time) on April 13, West Texas Intermediate crude traded at $104.8 a barrel, up $8.24 or 8.53% in the last 10 minutes. Brent crude, the international benchmark, stood at $102.7, up $7.54 or 7.92%. Murban crude slipped 1.47% to $98.16.

The US military said it would begin a blockade of all Iranian ports "within hours", after peace talks in Pakistan collapsed with Washington blaming the Islamic republic's refusal to abandon its nuclear ambitions.

The announcement came despite a ceasefire agreed on Wednesday aimed at pausing the six-week war until April 22, with tensions centred on whether the United States can force Iran to reopen the strategic Strait of Hormuz, another of its key demands in the stalled negotiations.

Lebanese Prime Minister Nawaf Salam said Sunday he was working to stop the Israel-Hezbollah war, even as Israeli premier Benjamin Netanyahu told troops in south Lebanon that the fight there was far from over.

Iran says was "inches away" from deal with US in Islamabad, French news agency AFP reported.

The talks in Islamabad ended without an agreement. Iran’s foreign ministry has publicly said Tehran entered the high-stakes negotiations in Islamabad in “good faith” and came close to an agreement with US officials, but ultimately no deal was reached after 21 hours of face-to-face talks aimed at stabilising the fragile ceasefire and ending the ongoing Middle East conflict.

Day 44: US to begin 'blockade' of Iranian ports on Monday

Day 43: 3-way talks with the US and Iran begin in Pakistan

Day 42: Trump says Iran has 'no cards' as Vance heads for talks

Day 41: Kuwait condemns drone attacks, US warns vs Hormuz toll

Day 40: Trump agrees to suspend attack on Iran by two weeks

Day 39: UAE, Qatar on alert as Trump's deadline nears

Day 38: Iran and US receive draft proposal for war ceasefire

Day 37: Second F-15E crew member rescued in Iran

Day 36: Trump warns Iran: 48 hours or all hell will reign down

Day 35: Trump seeks $1.5t defence budget as war intensifies

Day 34: UN chief warns world on 'edge of a wider war'

Day 33: Trump says US to hit Iran 'extremely hard'

Day 32: Debris hits several homes in Dubai, 4 injured

Day 31: Trump threatens to obliterate Iran's Kharg island