U.S. President Donald Trump says the American military has begun a blockade of Iranian ports as part of his effort to force Iran to reopen the Strait of Hormuz.

Speaking outside the Oval Office overnight, Mr Trump suggested the U.S. is still willing to engage with Iran, after 21-hour long peace talks failed at the weekend. 

Also, an extraordinary feud is growing between US President Donald Trump and the Pope.

The global leader of the Catholic church has said he plans to continue speaking out against war, despite scathing comments from the US president.

While in Australia, energy prices are on the rise due to the war in the Middle East, but the cost of electricity hasn't seen a similar jump, we'll unpack why that is.

There's also a lot of movement in the defence industry.

You'll hear about the billions of dollars set to be invested in drones, and major changes in the top military.

Recap the morning's news, politics and global affairs with the Breakfast Wrap.