US signals long-term Iran naval blockade as Hormuz tensions squeeze oil flows

The United States says it can keep its naval blockade of Iran in place for as long as needed. The standoff is deepening Strait of Hormuz risks and fresh worries over global energy supplies.US Defense Secretary Pete Hegseth said the US Navy could sustain the blockade indefinitely by rotating ships in and out of the regionThe United States has indicated it is prepared to maintain its naval blockade of Iran for an extended period, increasing economic pressure on Tehran as efforts to secure a lasting ceasefire remain stalled and concerns grow over tightening global energy supplies.Speaking during a visit to Panama, US Defense Secretary Pete Hegseth said the US Navy could sustain the blockade indefinitely by rotating ships in and out of the region. His remarks underscored Washington's determination to keep pressure on Iran despite mounting concerns over the broader economic impact of the conflict."Indefinitely the United States Navy can maintain a blockade like that because we'll rotate ships in and out, as we have, and we'll continue to," Hegseth said.Treasury Secretary Scott Bessent said the United States was preparing to intensify economic pressure on Iran, signalling that additional sanctions and financial measures could be announced in the coming days. Speaking on Newsmax's Rob Schmitt Tonight, Bessent said Washington was planning unprecedented steps to further isolate Tehran economically."Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country," he said. The blockade has become a central element of the US strategy against Iran, targeting the country's shipping and port operations and restricting a key source of foreign currency earnings. Washington briefly eased the restrictions for a month in June but later reimposed them after diplomatic efforts failed to produce a breakthrough.The latest comments come amid renewed tensions in and around the Strait of Hormuz, one of the world's most important energy corridors. Before the conflict erupted in February, roughly one-fifth of global oil and liquefied natural gas trade passed through the waterway.Iran has repeatedly insisted that the strait will not be fully reopened until its conditions are met, including the removal of economic sanctions and the release of frozen Iranian assets. US President Donald Trump, meanwhile, has maintained that Washington retains control over security in the strategic passage.Tensions escalated further on Thursday after two vessels operated by the Abu Dhabi National Oil Company (ADNOC) were reportedly attacked while transiting the Strait of Hormuz. The United Arab Emirates condemned the incident and blamed Iran, describing it as an attack on commercial shipping and freedom of navigation.The security situation has contributed to a sharp decline in maritime traffic through the strait. Shipping volumes have fallen significantly from pre-war levels, highlighting the continuing disruption to global trade and energy flows.The standoff is also adding to concerns about the global oil market. The International Energy Agency this week raised its estimate for the decline in global oil supply this year, warning that production losses are deepening as the conflict drags on. The agency now expects global supply to fall by 4.3 million barrels per day, compared with an earlier forecast of 3.7 million barrels per day.Although oil prices fell on Thursday amid concerns over weakening demand and rising US crude inventories, markets remain sensitive to developments in the Middle East. Reports that Yemen's Iran-backed Houthi movement targeted a Saudi Aramco refinery with drones have fuelled fears of a broader regional escalation.Economists have warned that a prolonged conflict and continued disruption to energy supplies could slow global growth and increase recession risks in several economies. With ceasefire negotiations showing little progress, uncertainty over the future of the Strait of Hormuz and global oil markets continues to weigh on investors and governments alike.- EndsWith inputs from ReutersPublished By: Nitish SinghPublished On: Aug 14, 2026 06:35 IST