US blockade on Iran: Strait of Hormuz risks in 2026

What the US Treasury is signalling

US Treasury Secretary Scott Bessent said on Sunday that the United States is “suffocating” Iran’s leadership through an “economic blockade” running in parallel with a US military offensive. Speaking on Fox News, he framed the effort as a whole-of-government push aimed at restricting Iran’s ability to finance its security forces and associated networks. Bessent described the campaign as an acceleration from an earlier “max pressure” posture ordered by President Donald Trump last March. He added that, three weeks ago, Trump directed the Treasury to begin a new phase called “Economic Fury.”

The statements matter because they tie financial enforcement, sanctions-style restrictions, and naval activity to a chokepoint central to global energy shipping. The Strait of Hormuz is described in the material as a crucial passageway for hydrocarbons from the Gulf and typically sees about a fifth of the world’s trade in oil and natural gas. Any sustained restriction in that corridor can alter shipping routes and elevate uncertainty for energy-linked markets.

“Economic Fury” and “Operation Epic Fury”

Bessent said the Treasury’s “Economic Fury” is designed to supplement the Pentagon’s “Operation Epic Fury,” signalling that the economic and military tracks are being coordinated. In the Fox News interview, he said the US is “running a marathon over the past 12 months and now we are sprinting toward the finish line,” presenting the measures as an intensification rather than a new policy direction.

He also said, “This is a real economic blockade,” and described it as “all hands on deck.” Separately, he posted on X that “the BLOCKADE will continue, until there is pre-February 27 Freedom of Navigation” in the Strait of Hormuz. The reference to “pre-February 27” positions freedom of navigation as a specific benchmark for easing pressure.

Strait of Hormuz: restrictions from both sides

The article text says both Iran and the United States have imposed restrictions on ships passing through the Strait of Hormuz. While Iran has blocked most shipping in the passageway, the US Navy says it is blocking all ships heading to or from Iranian ports. Bessent also said “no ships are getting through” from the Iranian side.

The material adds that both sides are said to be negotiating while a fragile ceasefire holds. Trump has also offered a plan to reopen the strait at the mouth of the Persian Gulf, where oil, natural gas, and fertilizer shipments typically pass. Fertilizer flows are highlighted as important for farmers globally.

Targeting money flows linked to the IRGC

Bessent said the Treasury is imposing economic measures “on anyone trying to remit money into Iran to help the IRGC,” referring to Iran’s Islamic Revolutionary Guard Corps. He accused the IRGC of corruption and said it has been stealing from the Iranian people for years. He also said US authorities have tracked offshore assets and will continue to do so, while claiming those assets would be preserved “for the Iranian people on the other side of this conflict.”

In another report included in the material, Bessent said the US is freezing bank accounts and “retirement funds” held outside Iran, and tracking down assets including overseas properties. That report also said the Treasury has seized nearly $100 million in Iranian cryptocurrency assets.

Oil pressure: storage constraints and production curbs

Bessent said the US believes Iran’s oil industry may need to start shutting in wells “in the next week” as crude storage is “rapidly filling up.” He added that Iran’s oil infrastructure is “starting to creak” and alleged it has not been maintained because of decades-long sanctions. Bloomberg also reported, citing a senior Iranian official, that Iran has begun curbing production to stay ahead of capacity limits rather than waiting for tanks to fill completely.

The material also notes that the US-led blockade is intended to cut off Iran’s oil exports, described as Tehran’s main revenue source. Another referenced claim says the blockade has already curbed “billions of dollars” in Iranian oil exports, without providing a specific figure.

Claims of domestic stress inside Iran

In his X post, Bessent said “food and gasoline rationing are in place” in Iran. On CBS’s Face the Nation, National Economic Council Director Kevin Hassett echoed the pressure narrative, saying Iran had “an economy that’s really on the precipice of extreme calamity.” Hassett added, “They are having a hyperinflation,” and said, “They’re starting to have hunger.”

These assertions are presented as official US characterisations of the situation and are not independently verified within the provided material. Still, the comments underline that Washington is framing the campaign as one that aims to weaken the state’s operational capacity, including its ability to pay soldiers.

China, oil purchases, and the rescheduled Trump-Xi meeting

Bessent also commented on an upcoming meeting between Trump and Chinese President Xi Jinping that was rescheduled from April to May due to the Iran war. He said China has been “financing” Iran through its purchases of oil and that the US has been encouraging China not to do so.

This line of pressure extends the US focus beyond maritime control into buyer-side enforcement and diplomacy, especially around oil trade. In the separate report dated April 30, Bessent said the US has warned buyers of Iranian oil and is willing to apply secondary sanctions on industries and banks that tolerate Iranian oil in their systems.

Why this matters for Indian markets and sectors

For Indian investors, the key channel is global energy and shipping risk. The Strait of Hormuz is described as carrying about a fifth of global oil and natural gas trade, making it a major reference point for crude price volatility and freight costs. India’s macro indicators and sector performance often track global crude trends because imported energy influences the trade balance and inflation sensitivity.

The material also highlights fertilizer shipments through the region, which can be relevant for agri-linked supply chains. Any sustained uncertainty around navigation can keep markets attentive to updates on freedom of navigation, enforcement intensity, and negotiation progress.

Key facts at a glance

What to watch next

The material indicates negotiations are underway under a fragile ceasefire, while the US says the blockade will continue until freedom of navigation conditions return to a “pre-February 27” baseline. Investors will track whether shipping restrictions ease, whether enforcement expands to additional buyers or intermediaries, and whether the US signals any timeline for de-escalation. The rescheduled Trump-Xi meeting from April to May is another event to monitor because the US has explicitly linked China’s oil purchases to Iran’s financing. Any formal announcement on reopening the strait, or on sanctions enforcement against remittances and oil buyers, is likely to shape market attention in the near term.