Oil prices have surged due to the ongoing blockade of the Strait of Hormuz, which has now been effectively closed for three months amid stalled peace talks regarding the Iran war. Brent crude oil prices rose by 2.5% to $107.97 per barrel, while West Texas Intermediate traded near $96. The blockade has created significant disruptions in the global supply of crude oil, natural gas, and other essential products, raising fears of an inflation crisis. The International Energy Agency has labeled this situation as the biggest supply shock in history. US President Donald Trump recently canceled a trip by his envoys to Pakistan, which was mediating the talks, signaling a further breakdown in negotiations. Both the US and Iran have maintained a blockade on the Strait, making it virtually impassable and leading to a loss of at least 1 billion barrels of oil. This situation is forcing consumption to recalibrate lower as supply continues to dwindle.