US Blocks Iran’s Strait of Hormuz, Halting Trade
The United States has officially implemented a blockade on Iranian ports in the Strait of Hormuz, significantly impacting the nation’s economy and leading to daily losses of around $435 million, according to CENTCOM. President Trump has pointed to the importance of collaboration with China and indicated future discussions, while Saudi Arabia is anxious about potential escalations.
Economists, including Treasury Secretary Scott Bessent, are examining the financial consequences of the Navy’s actions as well as ongoing ceasefire talks. They noted that U.S. oil exports are reaching record highs, applying further pressure on Iran.
In a surprising move, Iran has started using a covert maritime network for transporting tens of millions of barrels of oil to circumvent the blockade, as reported by Windward AI.
The blockade took effect on April 13, coinciding with unsuccessful ceasefire negotiations between the U.S. and Iran, with Trump insisting that the crucial waterway, which sees about 20% of global oil traffic, must remain accessible.
Windward indicated that Iranian oil continues to be distributed through indirect routes and offshore transfer networks. As of April 13, at least 11 tankers carrying approximately 20 million barrels of Iranian crude oil were located within a ship-to-ship transfer hub near Malaysia.
Following the establishment of the blockade, Trump called for a strict “all or nothing” closure of the Strait after talks with Iran failed.
Windward confirmed that several vessels are poised to either unload or prepare for onward journeys, emphasizing Iran’s reliance on maritime storage and transfer methods. This setup allows Iranian oil to bypass the Strait directly.
While the blockade has received widespread attention, the U.S. military announced on April 14 that in the initial 48 hours following its enforcement, not a single ship was able to pass through their forces. Furthermore, the military was able to advise nine oil tankers to turn back towards Iranian ports.
Interestingly, on the blockade’s first full day, there were signs of a mixed response, with some vessels attempting to cross or alter their routes. Windward described this situation as a fragmented compliance with the new restrictions.
The military has assured that the blockade will target only maritime traffic linked directly to Iranian ports while not infringing on the passage rights of other ships in the Strait.
It appears, however, that sanctioned and falsely flagged vessels are continuing to operate despite the evolving enforcement conditions.
The tanker Rich Starley, which is U.S.-licensed, resumed its journey after initially turning around, opting for a different route as suggested by Iran. Meanwhile, another U.S.-licensed chemical tanker, the Mrikishan, was seen entering a port, signifying ongoing complexities in the enforcement of the blockade.
