President Donald Trump has instructed his aides to prepare for an extended U.S. Naval blockade of the Strait of Hormuz, according to a report by the Wall Street Journal. This move aims to intensify economic pressure on Iran as the ongoing war enters its third month.
Decision to Maintain Pressure
In meetings with top aides, the president decided to continue restricting Iran's ability to export oil by halting any vessels heading to or from Iranian ports. The Wall Street Journal reported on Tuesday night that Trump determined this approach was less risky than resuming bombing campaigns or withdrawing the U.S. from the conflict entirely.
The decision indicates that the U.S. may be entering a prolonged period of halted fighting without a durable resolution, leaving the status of traffic through the Strait of Hormuz uncertain.
Blockade Details
The U.S. has been blocking ships traveling to and from Iranian ports to reduce the country's oil revenue. Meanwhile, Iran has kept the strait closed to nearly all other traffic. Trump earlier stated that Iran had asked the U.S. to lift the naval blockade while negotiations to end the two-month war proceed.
On Truth Social, Trump claimed that Tehran wants the critical waterway for oil and gas shipments reopened "as soon as possible, as they try to figure out their leadership situation," adding that Iran is in a "State of Collapse."
Iran's Negotiating Position
Iran has signaled a willingness to accept an interim deal to reopen the strait in exchange for Washington ending its blockade of Iranian ports. However, it insists on retaining some control over shipping through the strait, a condition Washington is unlikely to accept.
Trump rejected this offer, telling aides it showed Iran was not negotiating in good faith, according to the Wall Street Journal. Mediators in Pakistan expect Iran to submit a revised proposal to end the war in the coming days, as reported by CNN.
Global Impact
Brent crude rose for a seventh consecutive session, settling above US$111 a barrel, as concerns grow over a protracted peace process that could keep Hormuz shut indefinitely. The war's ripple effects were highlighted when the United Arab Emirates announced its departure from OPEC, dealing a blow to the oil cartel and its leader Saudi Arabia. The UAE, capable of producing more crude than its OPEC quota allows, has long been frustrated by the group's restrictions.
UAE Energy Minister Suhail Al Mazrouei stated, "The decision is taken at the right time in our view because it's not going to hugely impact the market: the market is undersupplied." He added that Abu Dhabi believes the shortages caused by the war require agility to respond to market demands.
The warring sides initiated a ceasefire around April 7, but hostilities may resume if they fail to agree on fresh talks following an inconclusive first round in Pakistan in mid-April.
