Trump’s Latest Oil Blockade Brings Bigger Economic Risks
Oil markets shrugged it off, but the effort to hurt Iran could provoke retaliation that inflicts more damage on energy assets and the global economy.
Oil markets shrugged it off, but the effort to hurt Iran could provoke retaliation that inflicts more damage on energy assets and the global economy.
The U.S. military has provided few details on how it might carry out President Trump’s orders as he seeks to pressure Tehran on a peace deal. But history and established practices offer some clues.
European countries declined to take part in the action, which is designed to pressure Iran into making concessions by cutting off its oil income.
The vessels exited the Strait of Hormuz on Monday, hours before a U.S. naval blockade took effect.
President Trump is trying to choke off the country’s lifeline with a blockade of the Strait of Hormuz. But the Iranians are betting that his tolerance for political pain is limited.
Prime Minister Keir Starmer said the U.K.’s diplomatic efforts are directed at keeping the vital waterway “open, not shut.”
President Trump’s announcement of a U.S. blockade was his latest effort to pressure Iran to negotiate after direct talks over the weekend did not yield an agreement.
Iran denied that the American destroyers had entered the strait, as negotiations for an extended cease-fire continued in Islamabad.
An association of airports told European Union officials that fuel shipments through the Strait of Hormuz had to restart within three weeks to avoid a “systemic” shortage.
The war with Iran is preventing huge amounts of oil from flowing out of the Persian Gulf, but the prices that many people track don’t fully capture the scale of the disruption.