The global energy market is back in the "danger zone" this morning.
Just 24 hours after a glimmer of hope, Iran has officially reimposed strict military control over the Strait of Hormuz, accusing the United States of stabbing them in the back.
The whiplash began when Iran briefly "reopened" the vital chokepoint on Friday following a 10-day truce between Israel and Hezbollah in Lebanon.
But the celebration was short-lived.
President Donald Trump quickly took to social media to clarify that while the Strait might be "open for business," the massive U.S. naval blockade of Iranian ports remains in "full force and effect" until a final nuclear deal is 100% complete.
Iran’s joint military command fired back on Saturday morning, declaring that the Strait is now under "strict management" of their armed forces once again.
They warned that no commercial traffic will pass freely as long as the U.S. continues to choke off Iranian trade.
Revolutionary Guard gunboats have already reportedly opened fire on tankers attempting to transit, forcing multiple Indian-flagged vessels to turn back.
This "tit-for-tat" escalation comes at a brutal time for the world economy.
Roughly one-fifth of global oil flows through this narrow strip of water.
While Pakistan is frantically working to host a second round of peace talks in Islamabad before the April 22 deadline, the "zero-tolerance" stance from both Washington and Tehran has sent oil prices back into a vertical climb.
Meanwhile, the ceasefire in Lebanon is holding by a thread.
While families are streaming back into southern suburbs, Prime Minister Netanyahu warned that Israel is "not leaving" its new security buffer zones.
With 13 U.S. service members already killed in this seven-week war, the world is holding its breath to see if diplomacy can win before the clock runs out on Wednesday.