Iran Declares Strait of Hormuz Blockaded, Threatens Sanctions

Iran's Supreme National Security Council Secretary Mohsen Rezaei has declared the Strait of Hormuz "completely closed," refuting U.S. claims that it remains open. Rezaei stated that while billions of dollars and millions of barrels of oil previously passed through the strait, it now only sees "seven or eight ships with food." He further alleged that U.S. attempts to escort vessels through Omani reefs often result in damage or sinking.

Rezaei, a former commander of the Islamic Revolutionary Guard Corps, announced that Iran is implementing its own maritime blockade. He explained that Iran will designate a "forbidden zone" extending from the U.S. blockade area to within the Strait of Hormuz and the Persian Gulf. Any vessel attempting to transit this zone illegally will be placed on Iran's sanctions list, leading to insurance complications and potential refusal of entry. Rezaei predicted that many tankers would turn back, effectively turning the Strait of Hormuz into a "sanctions zone."

Analysts suggest Iran's actions are intended to escalate tensions ahead of the U.S. midterm elections in the fall, aiming to create political difficulties for the Trump administration. A key objective is to drive up oil prices, impacting gasoline costs for American consumers. However, the U.S. has a strategic petroleum reserve, which it can release to fuel companies as loans to stabilize prices. Currently, U.S. gasoline prices are around $1.10 per liter ($4.15 per gallon), a significant increase from the previous year, with $4 per gallon considered a psychological threshold for American drivers.

The U.S. administration has already announced the release of 172 million barrels from its reserve by year's end and early next year, a measure intended to gradually lower gas prices and mitigate the political impact of Iran's actions. It remains unclear what further actions Iran may take, potentially targeting the upcoming U.S. and possibly Israeli elections.