The United States has reinstated a maritime blockade on Iran, a move that immediately heightened shipping risks in the Strait of Hormuz and triggered a surge in global oil prices.
The decision, reported by The Age, follows a weekend of military attacks in the Middle East and marks a significant escalation in tensions over the critical waterway.
Iran has previously claimed it has closed the Strait, a development that has already triggered caution across global energy and equity markets.
The US enforcement of the blockade is set to begin on Tuesday, adding a concrete operational layer to the geopolitical standoff.
Brent crude prices climbed sharply in response to the news, reversing earlier losses as traders priced in the risk of prolonged supply disruption.
The energy rally came even as broader equity markets faced headwinds, with the ASX set to slip on losses from computer chipmakers and other artificial-intelligence beneficiaries.