Hegseth Says US Can Maintain Iran Blockade Indefinitely as Oil Supply Falls

The United States has signalled that it could maintain a naval blockade of Iran indefinitely, escalating economic pressure on Tehran as ceasefire efforts remain stalled, regional tensions rise and global oil supplies face growing disruption. US Defense Secretary Pete Hegseth said the US military could sustain a naval presence in the region for as long as necessary to enforce the blockade.

Speaking during a visit to Panama, Hegseth said the US Navy could continue rotating ships in and out of the region, allowing Washington to maintain the operation for an indefinite period. The blockade has already caused severe economic damage to Iran by restricting access to shipping routes and limiting the country's ability to generate hard currency.

The announcement comes as Iran seeks greater control over the Strait of Hormuz, one of the world's most strategically important waterways. Before the war began in February, roughly one-fifth of global oil and liquefied natural gas supplies passed through the strait. Shipping traffic has fallen sharply since the conflict intensified, with only eight vessels passing through on Tuesday compared with a 10-day average of around 12 and between 130 and 140 vessels before the war.

Iran has also been accused of attacking vessels attempting to cross the waterway. Two vessels operated by the state-owned Abu Dhabi National Oil Company were attacked while transiting the strait on Thursday evening, according to UAE state news agency WAM, with the United Arab Emirates government blaming Iran for the incident.

The confrontation has deepened after a tentative agreement reached in June to end the war collapsed. The United States briefly lifted its blockade of Iranian shipping and ports for a month in mid-June before restoring the restrictions. Washington has said the blockade could be lifted if Iran and Oman, which lie on opposite sides of the Strait of Hormuz, reach an agreement allowing commercial shipping to resume.

Tehran, however, has maintained that the waterway will not be reopened until its conditions are met. Iran has demanded the removal of economic sanctions and the release of frozen Iranian assets, while rejecting repeated US claims that Washington has secured complete control of the strategic passage.

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US President Donald Trump has repeatedly threatened to intensify military action against Iran but has so far resisted deploying ground troops or taking some of the more extensive military measures that have been discussed. Earlier this week, Trump indicated that he would focus more heavily on economic pressure rather than expanding direct military operations. The US has also tightened sanctions against Iranian individuals and entities accused of helping Tehran obtain weapons. However, the pressure campaign has not succeeded in bringing Iran back to negotiations, while the prolonged conflict has increased political pressure on the Trump administration to find a way to end the war.

The economic consequences are also spreading beyond Iran and the Middle East. The International Energy Agency on Wednesday increased its forecast for the decline in global oil supply this year to 4.3 million barrels per day, or about 4%, from an earlier estimate of 3.7 million barrels per day. Oil prices nevertheless settled more than 2% lower on Thursday as investors focused on weaker global demand and a sharp rise in US crude inventories. Market concerns returned after reports that Yemen's Iran-backed Houthi movement had targeted a Saudi Aramco refinery with drones, raising fears that the conflict could expand further across the region and threaten additional energy infrastructure.

The prolonged disruption is adding pressure to an already fragile global economy, with economists warning that an extended conflict could significantly reduce global growth and push some economies toward recession. Higher fuel prices are also creating domestic political problems for Trump, whose administration faces pressure to end a war that has become unpopular among voters.

Rising energy costs could further affect household finances and business activity while complicating the US political landscape ahead of November's midterm elections. With Washington now indicating that its naval blockade could continue indefinitely, uncertainty surrounding the Strait of Hormuz, Iranian oil exports and the broader regional conflict is likely to remain a major concern for global energy markets.

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