US threatens indefinite Iran blockade as Hormuz crisis deepens

The United States has threatened to maintain its naval blockade of Iran indefinitely, intensifying economic pressure on Tehran as ceasefire talks stall and tensions around the Strait of Hormuz escalate. US Defence Secretary Pete Hegseth stated the US military could sustain a naval presence in the region indefinitely to enforce the blockade, which has caused severe economic damage to Iran.

Iran has refused to reopen the strait without sanctions relief and the release of frozen assets. Iran blames the US for controlling the strait, despite US President Donald Trump denying such claims. The Strait of Hormuz has seen a sharp decline in commercial traffic since the conflict began in February, with only eight vessels passing through on a recent Tuesday, compared to an average of 12 vessels in a 10-day period and between 130 and 140 vessels before the war.

Iran insists the strait will remain closed until Tehran's demands are met, including the removal of economic sanctions and the release of its frozen assets. The US has temporarily lifted the blockade but later reinstated it, further limiting Iran's access to hard currency while compounding losses from attacks on its energy infrastructure.

The International Energy Agency forecasts global oil supplies will fall by 4.3 million barrels per day, or 4%, this year, worsening from its previous projection of a 3.7 million barrel decrease. The Strait of Hormuz is crucial to global energy markets, with about one-fifth of the world's oil and liquefied natural gas passing through the waterway.

Oil prices dropped more than 2% on Thursday, after a week of gains, as investors focused on weaker global demand expectations and a surge in US crude inventories. The conflict has reignited concerns that Iran-backed Houthi rebels may attack additional energy infrastructure, including a Saudi Aramco refinery in Jazan that was targeted with two drones.

US President Trump has threatened intensified military strikes against Iran but has avoided deploying ground forces or seizing strategic assets thus far. He has emphasized economic pressure over military escalation as his country faces domestic pressure to end the war, with higher fuel prices affecting his approval ratings and potentially impacting his party's chances in November's midterm elections.