Oil tops $125 as Hormuz blockade strangles global supply

Oil prices surged above $125 per barrel on Thursday, their highest in more than four years, as the United States pushed for an international coalition to restore navigation through the Strait of Hormuz while warning that a naval blockade of Iran could last months. The blockade has shut down the critical waterway, which carries one-fifth of global oil supplies, for weeks as the US and Israel wage a grinding war against Iran that began with airstrikes on February 28 and has cost American taxpayers $25 billion so far. President Donald Trump said negotiations with Tehran would hinge on Iran relinquishing its nuclear ambitions, while Iran warned of "unprecedented military action" against US blockading of its vessels. The State Department has sent an internal cable to US embassies calling on diplomats to convince other governments to join the "Maritime Freedom Construct," a US-led coalition to share information, coordinate diplomatically, and enforce sanctions against Iran. France, Britain and other countries have held talks on contributing but said they were only willing to help open the strait after hostilities cease. As talks remain stalled, Pakistan is serving as a mediator between Washington and Tehran, with Iranian officials saying they need until the end of the week to respond to US "observations" on a revised peace proposal that would set aside nuclear discussions until the conflict formally ends. The economic toll on Iran has been severe, with its rial currency hitting a record low of 1.8 million to the dollar as the blockade cuts off a key source of government revenue by stopping oil shipments. Iran has executed at least 21 people since the war began and arrested more than 4,000 on national security charges, according to the UN human rights chief. Meanwhile, Hezbollah has deployed fiber-optic controlled drones against northern Israel in the latest escalation, leveraging technology that cannot be electronically jammed. Trump faces domestic pressure as his approval rating has fallen to the lowest of his current term amid surging gasoline prices, with the president telling oil executives he is prepared to continue the blockade for months if needed while minimizing impact on American consumers.