US President Donald Trump has ordered a full naval blockade of Iranian ships entering and leaving ports in the Strait of Hormuz.
The decision comes after the recent collapse of a peace deal in Pakistan. Analysts say the move is aimed at cutting off Iran’s revenue from the Strait of Hormuz.
There are currently about 15 US Navy ships in the Strait, and Trump has warned that any hostile action will be “destroyed” immediately. Iran, however, has called it a serious violation of the ceasefire agreement and has vowed to “retaliate” in “strongest possible way.”
Interestingly, many investors see the decision not as a provocation for war, but as a pressure tactic to bring Iran back to the negotiating table.
