Oil Prices Spike as U.S.-Iran Conflict Escalates with Naval Blockade and Mining

The conflict between the United States and Iran has transitioned into a period of severe economic disruption and tactical escalation. President Trump has formalized a total naval blockade of Iranian ports, effective July 15, prohibiting all vessel traffic to and from the Iranian coast. In response, Iran’s Revolutionary Guard initiated a blockade plan of its own, deploying at least 100 mines in the Strait of Hormuz. This volatility caused international oil prices to jump nearly 3% on Tuesday, as markets react to the potential severing of a corridor that handles 20% of the world's oil supply. On the military front, U.S. forces completed a fourth night of airstrikes on July 14, targeting military infrastructure in several provinces including Bushehr and Bandar Abbas. Iran retaliated with strikes against a U.S. air base in Jordan and cruise missile attacks on two Emirati tankers in Omani waters. The latter resulted in the first confirmed commercial fatality of the conflict. Domestically, Iranian authorities report civilian casualties among fishermen and emergency responders following U.S. strikes. Amidst the heightening tensions, a new diplomatic channel has emerged as Pakistan formally offered to mediate between the two nations. This follows the collapse of a previous ceasefire and Omani-led negotiations. While the Trump administration has pivoted away from a proposed 20% "safety passage toll" in favor of regional trade strategy, Iranian officials indicate that the current blockade has effectively dismantled immediate prospects for a peace deal.