Oil prices have surged by over 7% following President Trump's promise to impose a naval blockade on Iran and the Strait of Hormuz, following failed U.S.-Iran peace talks. The surge indicates that traders are not optimistic about a revival of the ceasefire deal, which could result in significant reductions in tanker transit. The blockade aims to deny Iran the leverage it uses as a bargaining chip and prevent it from exporting its oil. The high prices could delay relief at U.K. gasoline pumps.