Iran is not bluffing - or at least that is what they claim. Since Trump officially activated the blockade of the Strait of Hormuz, Tehran has responded with full combat readiness and threats of brutal revenge. Day 45 of the Middle Eastern conflict, and oil has already passed 102 dollars a barrel.

Brigadier General Majid Ibn Reza stated that the Iranian military is in maximum combat readiness and warned that any aggression will be met with a lasting and decisive response. The blockade started at 16:00 local time, and ships are already changing course - passage through the strait is forbidden.

Oil reacted instantly

Brent crude jumped 7.3% to 102.30 dollars a barrel, while WTI rose 8.7% to 104.94 dollars. When the Strait of Hormuz - through which roughly 20% of the world's oil passes - closes down, tankers pile up according to diplomats.

Nuclear talks collapsed

Previous talks in Islamabad ended without agreement. The US demands a 20-year moratorium on uranium enrichment, Iran proposes a single-digit timeframe and refuses to completely remove uranium from its territory. The stakes are enormous.

Israel's Netanyahu supports the blockade, Britain criticizes Trump's rhetoric, China calls for diplomacy, Pakistan continues mediation. Everyone piling up - nobody moving. And the oil price? It does not wait for diplomacy. Is the Balkans ready for 110 dollar oil?