Realizing optical-nonlinear effects at a single-photon level is a highly desirable but also extremely challenging task, because of both fundamental and practical difficulties. We present an avenue to surmounting these difficulties by exploiting quantum Zeno blockade in nonlinear optical systems. Considering specifically a lithium-niobate microresonator, we find that a deterministic phase gate can be realized between single photons with near-unity fidelity. Supported by established techniques for fabricating and operating such devices, our approach can provide an enabling tool for all-optical applications in both classical and quantum domains.