Iran has drastically reduced tanker traffic through the critical Strait of Hormuz by 97% since the onset of a military conflict with the United States and Israel on February 28, 2026, according to United Nations data. This strategic chokehold on a waterway that normally handles about 20% of the world's oil and liquefied natural gas is a direct pressure tactic aimed at the U.S. and global energy markets.
The move follows through on long-standing Iranian threats to target shipping in the Gulf if drawn into a larger conflict. Iran's Supreme Leader, Mojtaba Khamenei, has stated the strategic waterway should remain closed as a pressure tool. The country is employing an evolved military doctrine, spreading missile and drone attacks across the Gulf using cheaper, more advanced weaponry instead of relying on sea mines or regional proxies.
In response, former President Donald Trump announced the U.S. Navy will "soon" begin escorting tankers through the Strait, warning that any interference would cause him to reconsider his prior decision to spare Iranian oil infrastructure. This followed a significant U.S. airstrike on Iran's Kharg Island, which handles nearly 90% of the nation's crude exports. Trump claimed the strike eliminated all military objectives on the island but spared oil facilities "for reasons of decency."
The conflict has already driven oil prices up by more than 40%, creating economic strain domestically and among U.S. allies. This pressure has sparked a rare public rift within the White House. David Sacks, the White House's AI and cryptocurrency advisor, openly challenged the conflict's course in an interview, urging the administration to "declare victory and get out," a move he said is "clearly what the markets would like to see." He warned that continued strikes could provoke Iran to target energy facilities across Gulf states, creating a "truly catastrophic scenario."
Further economic pressure comes from U.S.-imposed "Iran Tariffs," threatening a 25% tax on any nation doing business with Iran. These secondary sanctions have alarmed European and Gulf allies and are impacting global trade, with countries like Pakistan scaling back commerce with Iran to protect access to the U.S. market.
