US President Donald Trump says the U.S. military has taken control of an Iranian-flagged cargo ship by blowing a hole in its engine room. 

It comes after Iran reversed its decision to reopen the Strait of Hormuz.

Iran has fired upon multiple vessels at the weekend, with no casualties reported. 

We dive into the state of the Strait with a former merchant mariner.

Then, we look at what this means for global oil markets, and how the diminishing supply of jet fuel could impact Australian airfares.

Then, there's lots to unpack with our federal politicians around the economic fallout of the Iran war. 

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