The United States reinstated its naval blockade on Iranian ports along the Strait of Hormuz late Tuesday, escalating tensions in the critical waterway through which about one-fifth of the world’s oil and natural gas supplies pass during peacetime. The move follows recent Iranian attacks on vessels attempting to navigate the strait and comes amid ongoing military confrontations between the two countries.

Following the blockade’s reimposition, U.S. forces launched a series of airstrikes targeting Iranian military installations, including a barracks belonging to the 388th Mechanised Infantry Brigade in Sistan and Baluchestan province. Iranian authorities reported at least seven fatalities in the strikes, which involved the launch of multiple missiles and included both conscripted soldiers and career military personnel. The U.S. Central Command stated that the operations targeted dozens of sites over a seven-hour period, continuing into daylight hours in a marked intensification of attacks.

The blockade had originally been imposed in mid-April but was lifted in mid-June following an interim agreement initiating a 60-day negotiation period addressing Iran’s nuclear program. However, negotiations have since stalled, and renewed hostilities in the strait have disrupted shipping traffic. Prior to the conflict, more than 130 vessels transited the strait daily, compared with just 21 ships recorded by maritime tracking firm Kpler on Tuesday after the blockade’s reinstatement. Many of these vessels appeared to be sanctioned or shadow ships attempting to evade detection. None of the ships reportedly used the alternate route through Omani waters.

The Iranian paramilitary Revolutionary Guard responded to the blockade by threatening to halt all energy exports from the Middle East, declaring that the region’s oil and gas exports would be “either for everyone or for no one.” Iranian forces reportedly launched missile attacks on U.S. allies Bahrain, Kuwait, and Jordan, the latter of which claimed to have shot down three incoming missiles. Missile alerts were issued in Bahrain and Kuwait as these countries faced the threat of Iranian fire.

Oil prices reacted swiftly to the escalation. Brent crude, the global benchmark, rose more than 1 percent to nearly $86 per barrel, while West Texas Intermediate crude increased to approximately $80 per barrel. Prices had surged earlier in the week, reaching a one-month high above $87 per barrel prior to a slight pullback after President Donald Trump announced plans to replace a previously suggested 20 percent fee on ships passing through the strait with unspecified “trade and investment deals” involving Gulf states. Trump asserted that oil was “flowing like never before,” though much of the observed activity likely involved Iranian shipments.

Global financial markets showed mixed responses. The S&P 500 finished Wednesday with a modest gain of about 0.4 percent, supported by data indicating a slowdown in U.S. inflation and reassurances from Federal Reserve officials regarding efforts to control price increases. Asian stock markets, including Japan’s Nikkei 225 and South Korea’s KOSPI, posted notable gains. European markets were mixed, with the broad Stoxx 600 index edging slightly higher while the United Kingdom’s FTSE 100 and Germany’s DAX declined.

The renewed blockade and military actions highlight the fragile security situation in the Persian Gulf, with both Iran and the United States vying for control over the strategic Strait of Hormuz. The ongoing conflict poses risks to global energy supplies and raises concerns about further destabilization in the region ahead of upcoming political developments in the United States.