President Donald Trump threatened to block ships from entering and leaving the Strait of Hormuz, even though Iran has already been limiting access to the same waterway, in a move aimed at increasing pressure while risking further disruption to global oil flows.“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump posted on Truth Social Sunday morning. “At some point, we will reach an ‘ALL BEING ALLOWED TO GO IN, ALL BEING ALLOWED TO GO OUT’ basis, but Iran has not allowed that to happen.”The Strait of Hormuz, a crucial route for global oil shipments, has been at the center of the conflict. Iran has tightened control over the passage, restricting tanker movement while still allowing some ships through.Despite these restrictions, the strait is not fully closed. Iran has been selectively allowing tankers to pass — sometimes charging up to $2 million per ship — and has continued exporting its own oil. It has maintained shipments of around 1.85 million barrels per day, even as global prices surged.This has created a key imbalance: while other countries face disruptions and rising costs, Iran continues to earn revenue from oil sales and transit fees. The restricted flow has already caused economic damage globally, pushing oil prices higher.Trump’s blockade is aimed at changing that dynamic. By stopping ships — including those linked to Iran or paying tolls — the United States could cut off a major source of funding for the Iranian government and military.At the same time, the strategy carries major risks. Blocking the strait more aggressively could further disrupt global oil flows and send prices even higher, worsening the economic impact worldwide.That risk has shaped earlier US decisions. The US Navy has continued allowing Iranian tankers to pass through the region, as ongoing oil flows help prevent even steeper increases in energy prices.In March, the United States also granted a temporary license allowing Iran to sell oil stored on tankers. This followed years of sanctions that had restricted Iranian crude exports after the US withdrew from the Iran nuclear agreement in 2018. The move released about 140 million barrels of oil into the market.The decision drew criticism because it allowed Iran to generate revenue during the conflict. Iran was able to sell its oil at prices above the global benchmark, benefiting financially from the situation.At the same time, the administration has been trying to keep oil prices in check while continuing the war effort. It coordinated a large release of emergency oil reserves and eased restrictions on Russian oil exports last month.Trump’s latest threat signals a shift from trying to manage oil prices to using the strait as leverage, even if it means escalating tensions in a waterway that is already partially restricted.
