FINWIRES · TerminalLIVE
FINWIRES

Trump Moves to Block Hormuz Shipping, Threatens Iranian Vessels Near US Forces

-- US President Donald Trump said Monday the US Navy has begun enforcing a blockade on the Strait of Hormuz, warning Iranian vessels risk immediate elimination if they approach, in a Truth Social post.

"Warning: If any of these ships come anywhere close to our blockade, they will be immediately eliminated," adding the response would be "quick and brutal," he posted on Monday.

Trump said Iran's naval fleet has been "completely obliterated," with about 158 ships, "laying at the bottom of the sea," while noting that only a small number of fast attack ships remain.

His warning was targeted at remaining vessels approaching US positions.

Trump added that enforcement tactics mirror anti-drug operations, stating the US uses "the same system of kill that we use against the drug dealers on boats at Sea," while claiming "98.2% of Drugs coming into the US by ocean or sea have stopped."

The comments follow US-Iran talks held over the weekend in Islamabad that failed to yield progress, with both sides unable to resolve key disputes.

After the breakdown, Trump said Sunday that Iran must act quickly, warning, "they better begin the process of getting this international waterway open and fast."

He added that the US Navy would enforce the move, saying "effective immediately, the United States Navy... will begin the process of blockading any and all ships."

Israeli Prime Minister Benjamin Netanyahu has reportedly warned that a ceasefire may end soon and backed Trump's blockade plan, according to multiple media outlets.

In an interview with Fox News on Sunday, Trump said that oil and gasoline prices may remain high through November's midterm elections. "It could be, or the same, or maybe a little bit higher, but it should be around the same," Trump reportedly told Fox News.

The US Central Command on Monday also issued directives stating that it will begin implementing the blockade of all maritime traffic entering and exiting Iranian ports at 10 ET on Monday.

"The blockade will be enforced impartially against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman," according to the statement.

The Middle East Murban crude benchmark was down 4.80% in early trading to settle at $102.87 per barrel. In contrast, Brent was up 5.46% at 100.40/bbl, and WTI futures also tracked gains, up 5.27% at $101.66/bbl.

Related Articles

Oil & Energy

EMEA Oil Update: Brent Ease as Trump Extends Ceasefire

Crude futures eased on Wednesday as the US extended its ceasefire with Iran, temporarily stalling a direct military escalation.The Brent futures contract slipped 0.8% to $97.74 per barrel. Murban closed at $96.29 on April 21 and was not trading as of the time of publishing this oil price update.US President Donald Trump said Tuesday that he extended the ceasefire with Iran while maintaining a blockade, as negotiations remain uncertain.Trump said in a Truth Social post, "... upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal."Trump said the US blockade would be maintained, signaling continued pressure, and also indicated that talks remain conditional on Iran presenting a clear negotiating position.While President Trump delayed military action against Iran at Pakistan's request, the continued closure of the Strait of Hormuz is suppressing global demand."The conflict is curbing supply, with demand destruction near 4 million barrels per day and possibly rising to 5 million mainly impacting Asia," Saxo Bank analysts said.On the supply side, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories declined by 4.40 million barrels in the week ended April 17.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

Asia

Market Chatter: Malaysia Postpones Planned Carbon Tax Amid Middle East Worries

Malaysia has delayed its planned carbon tax implementation, citing ongoing geopolitical tensions in the Middle East, The Star reported Tuesday, citing Natural Resources and Environmental Sustainability Minister, Arthur Joseph Kurup.The tax, which was previously expected to start this year for sectors such as iron, steel and energy, has been deferred to avoid adding pressure on industries and consumers. Kurup said the government will instead prioritize setting up a carbon credit framework, including verification systems and a national carbon registry, reportedly.The National Carbon Market Policy (DPKK), approved on April 1, will serve as the basis for Malaysia's participation in both voluntary and compliance carbon trading markets. He added that Malaysia remains committed to emissions reduction targets for 2035 and its net-zero goal by 2050, while continuing to push the green transition, the news outlet said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$^KLSE
Asia

Japan Equities Advance on Stronger Outlook, Export Growth

Japanese equities closed higher on Wednesday, with the Nikkei 225 gaining after J.P. Morgan raised its year-end target for the benchmark to 70,000 from 61,000, citing momentum in AI and a weaker yen.On Wednesday, the Nikkei 225 rose 0.4%, or 236.69 points, to close at 59,585.86.Analysts at J.P. Morgan said concerns about overheating in the Nikkei 225 outweigh improving long-term growth prospects for Japanese equities, even as crude prices stay elevated.The benchmark index climbed to a record on Wednesday, nearing the 60,000 mark, as it recovered from a broad global selloff linked to tensions in the Middle East.In economic news, Japan's trade surplus widened to 667 billion yen in March as exports grew faster than imports, with shipments to China and the U.S. offsetting a sharp slump in Middle East trade amid the Iran conflict, data from the Ministry of Finance Japan showed.The Bank of Japan said the financial system remains stable but flagged rising risks from geopolitical tensions, higher oil costs, and exposures to real estate, foreign funds and leveraged market activity.On the corporate front, Mitsubishi UFJ Financial (TYO:8306) fell over 1% after a report said it is considering offering higher deposit rates for a planned digital bank to compete on speed and cost.Tokyo Electric Power (TYO:9501) rose about 4% after securing 4.7 billion yen in fresh grants to support ongoing nuclear compensation payouts.Advantest Corporation (TYO:6857) gained around 3% after joining Applied Materials' EPIC platform and opening a Silicon Valley research center to advance chip development.

$^N225$TYO:6857$TYO:8306$TYO:9501