The US reinstated the naval blockade on Iran's southern ports after the military tension in the Strait of Hormuz. This move nearly completely halted Iran's oil exports and pushed up prices in global markets.
The earlier blockade, which began in mid-April and lasted nine weeks, was lifted in June with a signed memorandum of understanding. At that time, Iran had begun exporting tens of millions of barrels of oil that it had been holding in supertankers. But after the latest attacks over control of the strait, Washington canceled the oil and banking waivers and prevented Iran-linked vessels from returning to ports.
Oil Exports Halted
Iranian Parliament Speaker and chief negotiator Mohammad Bagher Galibaf said in a television interview at the end of June that during the previous blockade "we could not export even a single barrel of oil." Energy analyst Hamidreza Shokouhi stated that the new siege will remove at least 1.5 million barrels per day of Iranian oil exports from the market. This development pushed oil prices to $90 per barrel, and he warned they could rise further if the conflict continues.
Shokouhi said, "This means more pressure on global strategic reserves, which have already been used during the war." According to the analyst, Washington's insistence during the truce period that vessels use the southern route of the Strait of Hormuz near the Omani coast contributed to the current military escalation.
Military Escalation and Infrastructure Strikes
US Central Command (CENTCOM) rerouted several vessels operating in the Strait of Hormuz and launched an attack to neutralize the Curaçao-flagged supertanker Belma, which it claimed was carrying Iranian crude oil during the war. Iran is also accused of attacking ships in the strait, which led to US bombing of Iranian coastal areas.
The mutual strikes between the US and Iran, now in their seventh night, have rapidly escalated. In addition to Iran, Kuwait and Bahrain were also targeted by Iranian missiles and drones. The US military heavily struck provinces across Iran, particularly southern regions near the strait.
Civilian infrastructure such as bridges, tunnels, ports, power plants, and water facilities were systematically targeted alongside military installations. Some experts have suggested that these attacks could be in preparation for a ground invasion of Iran's coastal areas.
Following the renewed flare-up of hostilities, US forces struck the Ak Tekeh railway bridge in Iran's northern Golestan province last week. Although Iranian officials announced that the damage was quickly repaired, the attack revealed Washington's intention to target import-export routes to amplify the naval blockade's effect. Ak Tekeh lies on the line connecting Iran to Turkmenistan, Russia, and China and is critical for transporting goods such as food and iron ore.
Economic Crisis Deepens
The previous blockade had made daily life harder for over 90 million Iranians. While widespread shortages of staple foods were not experienced, inflation—already among the highest rates in the world—surged further. Prices of items such as eggs, chicken, and cooking oil tripled compared to a year earlier.
The renewed military escalation and blockade have also exerted intense pressure on the Iranian rial. The rial traded above 1.93 million against the dollar on Saturday, the first day of the Iranian week, in Tehran's free market—its lowest level ever. The Tehran Stock Exchange also continued its downward trend last week, with the main index losing another 120,000 points (2.4%) on Saturday to fall to 4.77 million.
Energy analyst Shokouhi said that Iran has responded to the blockade by trying to prevent other countries in the region from exporting oil through the strait, thereby putting pressure on the US and its allies. "When the US acts this way, Iran acts by not prioritizing the economy and using the leverage it has," he said.
Iran's armed forces warned that they would retaliate against US strikes on civilian infrastructure by hitting similar targets in regional countries that host US bases. Shokouhi said, "Let us not forget that the US and Israel initiated the infrastructure attacks by striking the South Pars gas fields, the oil depots in Tehran, and the petrochemical facilities in Mahshahr."
Shokouhi noted that with the help of the Houthis in Yemen, Iran could significantly disrupt maritime traffic in the Bab-el-Mandeb Strait if US President Donald Trump follows through on threats to strike more civilian infrastructure such as power plants and bridges. "Trump's actions in recent months, and especially in recent days, have made the situation even more intractable and the outlook more uncertain. The current situation cannot continue for long, but it is expanding the scope of the conflict, and that is alarming," he added.
