Shipping traffic in the Strait of Hormuz has come to a near halt after Iran reversed its decision to allow vessels to pass, firing on ships and warning of blockades as long as the US maintains its blockade of Iranian ports. This standoff threatens to escalate the ongoing energy crisis affecting the global economy and undermines expectations for a peace deal between the US and Iran. The Strait of Hormuz is a critical passage for about 20% of the world's oil and liquefied natural gas. Iran's Parliament Speaker Mohammad Bagher Ghalibaf acknowledged that while significant gaps remain in negotiations, progress is being made. The US military is reportedly preparing to board Iran-linked oil tankers to exert pressure on Iran. Meanwhile, tensions have escalated in Lebanon, with Israel conducting strikes amid a fragile ceasefire linked to the Hormuz situation. Oil prices have dropped, with Brent crude falling 9% to around $90 per barrel, reflecting market optimism for a resolution. However, analysts caution that any agreement reached may be limited and not lead to lasting peace.