US threatens Iran with unprecedented economic isolation as Strait of Hormuz tensions escalate
Oil prices rise slightly amid indefinite naval blockade threats, UAE condemns ADNOC vessel attack, and Jared Kushner prepares for Middle East ceasefire mission
US Treasury Secretary Scott Bessent has threatened to subject Iran to economic isolation described as "unprecedented", signalling that new restrictive measures are expected to be implemented next week. Speaking to the conservative television network Newsmax, Bessent outlined a dual strategy that combines severe financial pressure with the maintenance of a naval blockade in the Strait of Hormuz to prevent goods from entering or leaving Iranian ports.
The announcement comes as the United Arab Emirates condemned an Iranian attack on two vessels linked to the state-owned Abu Dhabi National Oil Company (ADNOC) in the strategic waterway. The UAE foreign ministry reported that the hostile action resulted in no injuries and that the situation was brought under control. ADNOC confirmed the vessels were attacked while transiting the strait on Thursday evening.
Vice President JD Vance stated that maintaining low oil and petrol prices for Americans is the top priority in the conflict, with preventing Tehran from acquiring nuclear weapons ranking second. This stance contrasts with President Donald Trump’s repeated framing of the war’s sole objective as nuclear non-proliferation, even at the cost of short-term economic sacrifices for US consumers.
Oil prices inched higher following the US threats to maintain the naval blockade of Iran indefinitely. Brent crude futures rose 9 cents to $87.16 a barrel, while West Texas Intermediate (WTI) crude rose 4 cents to $81.29 a barrel, reviving crude supply concerns after prices had fallen in the previous session on a weaker global demand outlook.
Diplomatic efforts to stabilise the region continue in parallel with military posturing. Jared Kushner, alongside Board of Peace high representative Nickolay Mladenov and former British Prime Minister Tony Blair, is scheduled to arrive in Israel on Sunday before travelling to Cairo to advance a US-brokered ceasefire deal in Gaza.
Tensions in the Strait of Hormuz remain high, with Iran imposing an effective blockade and seeking to charge users for passage. Iran’s military command accused President Trump of "lies and fabrications" regarding claims of US "total control" over the strait, while Iran is currently in talks with Oman regarding future management arrangements.
US Ambassador to Israel Mike Huckabee also denounced a siege by Israeli settlers against Palestinians in the West Bank village of Qusra as a "horrific act of terror". Meanwhile, the US Navy is engaged in logistical efforts to relieve the aircraft carrier USS Abraham Lincoln, which has been described as "troubled".
