President Trump's blockade threat against Iranian shipping through the Strait of Hormuz has jolted global markets, with Brent crude surpassing $102 a barrel and West Texas Intermediate above $104. The average U.S. gas price has climbed to $4.125 a gallon, according to AAA, as traders react to escalating tensions in the Middle East. U.S. stock futures are down slightly, while 10-year Treasury yields have risen above 4.34 percent.

American forces plan to block ships from entering or leaving Iranian ports starting at 10 a.m. Eastern, though other traffic through the critical waterway will continue. This represents a significant shift from last month's policy allowing Iranian tankers through to cushion global energy markets. Analysts at JPMorgan Chase estimate that the last pre-blockade oil tanker will reach port next week, marking when "pre-closure barrels are fully exhausted from the global supply chain."

The blockade threat carries severe economic implications for Iran, potentially costing its economy $13 billion monthly, according to estimates from the Foundation for Defense of Democracies. Iranian officials have vowed retaliation, warning that "no port in the Persian Gulf and the Sea of Oman will be safe" if the U.S. follows through. The standoff threatens to derail hopes for Middle East stability and poses significant risks to the global economy as finance officials gather for IMF and World Bank meetings.