Thank you for reading our rolling coverage of the war in the Middle East. You can find tomorrow’s live coverage of the Iran war here.
Until then, here’s what you need to know:
- US President Donald Trump said on Sunday (Washington time) the US would begin a full naval blockade of the Strait of Hormuz, escalating a stand-off that has brought the critical waterway to a near standstill and disrupted global energy supplies.
- Experts have warned that oil could soon skyrocket past $US150 a barrel if the US goes ahead with a planned naval blockade of the Strait of Hormuz. Brent crude, the global oil benchmark, surged above $US103 a barrel on Monday after weekend talks between Washington and Tehran failed to reach a deal on reopening the Strait of Hormuz, escalating a global energy crisis that’s shaken world markets.
- Trump’s announcement came hours after he said marathon peace talks in Pakistan collapsed because of Iran’s unwillingness “to give up its nuclear ambitions”.
- The blockade will further squeeze global oil supply, drive up fuel prices and cut off a vital lifeline for the Islamic Republic.
- Our senior economics correspondent, Shane Wright, reports that Trump’s plan to blockade the Strait of Hormuz has already had a major impact on commodity and equity markets. Crude oil prices have jumped by more than 7 per cent in early trade. West Texas finished last week’s trade around $US95 a barrel, but this morning, investors pushed it back to $US104 a barrel. It’s a similar story for Brent crude, which has also climbed in price by more than 7 per cent.
Trump has lashed out at Pope Leo in a post to Truth Social, calling the pontiff “WEAK on Crime, and terrible for Foreign Policy”, before saying “Leo should get his act together.”