US President Donald Trump is only using the Hormuz blockade to sell American oil to everyone and isolate Iran.
Trump on Sunday presented the blockade as a security measure that could effectively squeeze Gulf oil exports passing through the Strait of Hormuz and redirect global energy demand toward American crude inventory gathering dust since the war started.
The Strait of Hormuz remains the world’s most critical oil transit route, carrying a large share of daily global shipments to major importers such as Pakistan, Japan, India, and Europe. Any disruption in shipping traffic would tighten supply chains, drive up prices, and force buyers to seek alternative suppliers.
Trump announced the Hormuz plan after high-level talks in Islamabad failed to produce a breakthrough. Shortly afterward, US officials signalled increased naval pressure in the region. Oil prices jumped over $105 hours later.
Iran may respond asymmetrically if maritime restrictions are enforced. Possible retaliation scenarios include attempts to restrict vessels heading toward Gulf ports or expanding pressure on shipping routes near Yemen’s Bab al-Mandab, another strategic chokepoint linking trade between Asia, the Middle East and Europe.
Attention has also shifted to Yemen’s Houthis, who have previously targeted pro-US/Israeli vessels during periods of regional escalation. Any more attacks in the Red Sea corridor could widen the crisis beyond the Gulf.
Traders on X warned that even the threat of a blockade could send insurance costs and freight rates soaring.