The US threatens 'indefinite naval blockade' of Iran as oil crisis resurges

The United States has indicated it could maintain an indefinite naval blockade of Iran, escalating economic pressure as ceasefire talks falter. With global oil supplies dwindling and regional tensions escalating, Iran has effectively blocked the Strait of Hormuz since the US and Israel launched attacks in late February. Iran seeks to charge tolls for passage, and the collapse of a ceasefire in April and a memorandum of understanding in June has further strained relations.

US Defence Secretary Pete Hegseth asserted the US military's capability to enforce the blockade indefinitely, rotating ships in and out of the region. US Treasury Secretary Scott Bessent announced further financial damage to Iran, aiming to impose unprecedented economic isolation measures. Iran has retaliated by controlling the Strait of Hormuz, attacking vessels attempting to transit the waterway, through which a fifth of the world's oil passes.

Two vessels from the Abu Dhabi National Oil Company were targeted recently. The UAE government condemned these attacks as Iranian. US President Donald Trump faces pressure to end the unpopular war, with high fuel prices affecting his approval ratings and Congress's control. Iran demands the removal of sanctions and the release of frozen assets before reopening the strait.

Shipping traffic through the Strait of Hormuz has dropped to eight vessels, compared to the 10-day average of 12 before the war. The US has reimposed its blockade, cutting off Iran's primary source of hard currency and deepening wartime losses. The US has threatened further military action, though it has avoided deploying ground troops or attacking strategic sites.

The International Energy Agency forecasted a 4.3 million barrels per day drop in global oil supply, down 4 percent this year, causing oil prices to drop more than 2 percent on Thursday. Reports of Yemen's Iran-backed Houthis targeting a Saudi Aramco refinery with drones have renewed concerns about a widening regional conflict. Economists warn of a potential global recession if the war continues.