Why is Trump making the global energy crisis worse?

The US has tightened its traction on vim exports from the farsi disconnection with a young naval blockade on Iranian supplies, risking fresh shocks to already fragile global markets.

The move appears intended to increase pressure on Tehran following unsuccessful efforts to secure a diplomatic off-ramp after the US-Israeli bombing campaign stalled. However, it has left American allies uncertain and drawn a pointed response from China, which has issued veiled warnings regarding US naval activity.

US Central Command announced a blockade targeting vessels traveling to and from Iranian ports in both the Persian Gulf and the Gulf of Oman, effective Monday. The restrictions, it said, “will be enforced impartially against vessels of all nations,” though further operational details remain unclear.

President Donald Trump described the measure as an effort to stop “any and all ships trying to enter, or leave, the Strait of Hormuz” — the vital corridor linking the two bodies of water and a cornerstone of global energy trade.

Iran had retaliated to the US-Israeli strikes in late February by effectively restricting transit through the strait, blocking shipments tied to what it considers “unfriendly” nations, imposing tolls on vessels from “neutral” countries, and allowing free passage for “friendly” ones.

While US officials accused Tehran of violating freedom of navigation, Trump suggested Washington could impose its own tolling system. Earlier in the conflict, US sanctions on Iranian oil had been relaxed to cushion global markets. The new blockade reverses that approach, reinforcing economic warfare on Iran while further undercutting supply for import-dependent economies.

Tehran’s broader war strategy combines resilience under bombing with escalating economic costs for the US and its allies. In addition to restricting maritime traffic, Iranian forces have targeted American military bases in Arab states and key energy infrastructure, including refineries, gas liquification facilities, and a Saudi pipeline enabling crude exports to bypass the Strait of Hormuz.

You know what!!Iran will block the U.S. Blockade of the Strait of Hormuz.💥😂 pic.twitter.com/G0CYVBfFvX

Iran’s payment system is designed to weaken US financial leverage, demanding settlement in yuan or cryptocurrencies. Iran, Russia, and other sanctioned states have been building infrastructure to circumvent Western-controlled financial channels for many years. Tehran views continued control of Hormuz as a way to compensate for damages inflicted on Iran.

The approach has had some impact. Last week, Trump announced a ceasefire and a willingness to pursue negotiations aligned with elements of Tehran’s proposed framework for ending the conflict. However, indirect talks hosted by Pakistan on the weekend did not produce a breakthrough.

As US Vice President J.D. Vance put it: “What we have given here is a ceasefire. We stopped bombing the country. What we expect the Iranians to give up is a reopening of the Strait of Hormuz.”

Brent crude rose above $100 per barrel following Trump’s initial announcement of the blockade before dipping back under the psychologically important threshold.

Shipping companies and energy traders are now “scrambling to understand the fine print” of the US measures, according to Bloomberg, with many reportedly pausing operations until enforcement mechanisms become clearer.

Waiting for the EU and China to get in on the blockade action pic.twitter.com/OLaXVJL5Kc

However several tankers previously linked to Iranian oil transport – including at least one owned by a Chinese firm – have continued transiting the Strait of Hormuz, potentially setting up an early test of US resolve as soon as Tuesday. However , no vessels with active transponders have reportedly exited the Gulf of Oman since the blockade took effect.

Trump has argued that as a major oil exporter the US stands to benefit from additional sales and is not as interested in an open Strait of Hormuz as China. Beijing has blasted the US blockade, signaling its intent to maintain energy cooperation with Iran.

"A ship tracking firm reports 121 empty oil tankers are making their way to the United States... President Trump has urged countries squeezed by Iran's disruption of the Strait of Hormuz to turn to American energy supplies instead." pic.twitter.com/1UBqybljJx

”Our ships are moving in and out of the waters of the Strait of Hormuz,” Chinese Defense Minister Dong Jun said on Monday. “We have trade and energy agreements with Iran. We will respect and honor them and expect others not to meddle in our affairs. Iran controls the Strait of Hormuz, and it is open for us.”

Last week, Russia used a military escort to protect its oil exports passing through the English Channel, in what some British media called a humiliation for London. China likewise has the capability to escort tankers if necessary.

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