CNBC - President Donald Trump on Sunday said the U.S. will blockade the Strait of Hormuz after talks held in Pakistan to end the Iran war hit the skids.

“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump said in a post to his social media platform Truth Social. “The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION.”

The U.S. Central Command said in a post on X late Sunday that the U.S. military would begin implementing the blockade on Monday at 10 a.m. ET. CENTCOM said additional information would be provided to commercial vessels prior to the start of the blockade.

The blockade of vessels transiting the strait appeared to be somewhat more limited than the broad enforcement action Trump initially announced. CENTCOM said the U.S. will not impede vessels transiting the strait to and from non-Iranian ports. The blockade will only be enforced against vessels entering or departing Iranian ports or coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman.

The announcement of a U.S. blockade has dimmed hopes that the war would end in the coming days following peace talks in Islamabad. It also threatens to exacerbate the economic crisis that has gripped global economies since the war broke out and Iran began restricting access to the strait, a chokepoint which carries about a fifth of the world’s oil
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Trump said the U.S. blockade is an effort to stop Iran from policing the strait and benefiting economically while the rest of the world suffers from its closure.

“At some point, we will reach an ‘ALL BEING ALLOWED TO GO IN, ALL BEING ALLOWED TO GO OUT’ basis, but Iran has not allowed that to happen by merely saying, ‘There may be a mine out there somewhere,’ that nobody knows about but them,” he said. “THIS IS WORLD EXTORTION, and Leaders of Countries, especially the United States of America, will never be extorted.”

Trump, speaking on Fox News’ “Sunday Morning Futures,” said the effort will be a “complete blockade” and “all or none,” meaning no ship will be allowed to pass until Iran relents.

Trump also announced in the post that the U.S. Navy will “seek and interdict every vessel in International Waters that has paid a toll to Iran.”

Iran was preparing to toll vessels seeking passage through the strait, a move that invoked Trump’s ire as Tehran tries to cement its grip on the passage amid a two-week ceasefire in the conflict.

“No one who pays an illegal toll will have safe passage on the high seas,” the president said.

Trump and his advisers are also reportedly considering the resumption of limited military strikes in Iran, to put additional pressure on the regime to break the peace talk stalemate, The Wall Street Journal reported, citing officials and people familiar with the situation.

In an interview on Fox News, Trump appeared to once again threaten strikes on Iran’s critical infrastructure.

“I would hate to do it, but it’s their water, their desalinization plans, their electric-generating plants, which are very easy to hit,” Trump said.

Peace talks hosted by Pakistan broke down over what the U.S. described as Iran’s unwillingness to give up its efforts to obtain a nuclear weapon. Tehran’s demands include control of the Strait of Hormuz, payment of war reparations and a ceasefire across the region, including in Lebanon, according to Iranian state TV and officials. It is also seeking the release of its frozen assets abroad.

The U.S. delegation, led by Vice President JD Vance, met with Iranian and Pakistani negotiators for more than 21 hours during the rare face-to-face summit.

The war, and nearly complete closure of the strait, have put immense pressure on oil prices and the global economy. Markets have whipsawed throughout the campaign, and oil has at times rocketed to more than $100 per barrel.