After Iran announced it would continue to block the Strait of Hormuz, the US couldn’t stay idle: Treasury Secretary said they would escort ships as soon as circumstances permit, and the Energy Secretary said it could happen this month.
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After Iran’s new Supreme Leader publicly spoke for the first time, stating explicitly that the Strait of Hormuz will remain blocked, US officials issued frequent statements this Thursday, promising to escort oil tankers through the strait as soon as militarily feasible, but also admitted they are not ready for immediate escort operations. Meanwhile, international crude oil prices surged, and uncertainty remains over when shipping through this vital global energy artery will resume.
On Thursday Eastern Time, US Treasury Secretary Besent said in a media interview that the US Navy will escort vessels through the Strait of Hormuz as soon as “militarily feasible,” and may act jointly with an international coalition if necessary.
On the same day, US Energy Secretary Wright stated in another interview that the US military is “not yet ready” to implement escort missions, but expects to have the capability by the end of the month. The differences in their wording reflect ongoing internal disagreement within the US on the timetable for escorting ships.
Since February 28, when the US and Israel launched military action against Iran, the Strait of Hormuz has been effectively closed to shipping. The International Energy Agency (IEA) warned that the current disruption in oil supply is the greatest shock the global oil market has ever faced. Brent crude prices repeatedly broke above $100/barrel intraday Thursday, closing above that level for the first time since August 2022 and rising more than 9%.
Besent: Escorting is in the plan; Wright: Not ready now
Besent said on Thursday that US Navy escorting tankers through the Strait of Hormuz “has always been part of our planning,” adding, “I believe that once militarily feasible, the US Navy—or perhaps a joint international coalition—will escort vessels through the strait.”
Besent also said that the US has already conducted “weeks or even months of scenario analysis” regarding the impact of this war on oil shipping. He emphasized that the US “completely controls the airspace,” stating that Iran “has no air force, and the Iranian Navy has sunk both literally and symbolically.”
US Energy Secretary Wright stated Thursday that escorting “will be realized in a relatively short time, but not yet.” He explained, “currently, all our military efforts are focused on destroying Iran’s offensive capabilities and logistics supply chains.”
When asked if the US military might have escorting capabilities by the end of the month, Wright responded, “Yes, I think it’s quite likely.” He revealed that he would head to the Pentagon later that day to check on progress.
Wright also stressed that the Trump administration hopes this action against Iran will “permanently destroy Iran’s ability to build missiles, drones, and pursue nuclear plans,” rather than dragging into a “war of attrition lasting a year or two.” He said, “This is a short-term cost for long-term gain, but it’s a goal that must be achieved. Otherwise, in the coming decades, Iran can hold the world hostage at any time.”
Wallstreet Insights earlier mentioned that on Wednesday Wright posted on his personal social media claiming that the US Navy had successfully escorted a tanker through the Strait of Hormuz, but the post was soon deleted. White House Press Secretary Levitt later confirmed that no US Navy escort of tankers or vessels has occurred. This escorting confusion led to a near 20% plunge in international oil futures Wednesday.
Trump: Nuclear issue takes precedence over oil prices
US President Trump posted on social media Thursday that blocking Iran from acquiring nuclear weapons and preventing its threat to the Middle East is “much more important” to him than oil prices.
Trump previously promised on March 3 that “the US Navy will begin escorting tankers through the Strait of Hormuz as soon as possible.” He also stated on Wednesday that CEOs of major oil companies should proactively send tankers through this narrow waterway.
The US government on Wednesday also announced that Chubb will serve as the lead underwriter for a federal government-led program providing insurance for vessels passing through the Strait.
However, reports indicate that the US Navy is currently refusing “almost daily” escort requests from the shipping industry due to excessive risk.
US military announces sinking of 16 Iranian mine-laying ships; UK says Iran “may have started mining”
This Thursday, Trump posted on his social media warning that if Iran lays mines in the Strait of Hormuz, “we demand immediate removal,” and warned that if Iran mines and does not remove them, it will face “unprecedented” military consequences. He also posted that 10 decommissioned Iranian mine-laying ships had been sunk, “and more” mine-laying ships will be sunk.
Afterwards, US Central Command announced that the US military had sunk multiple Iranian ships on Tuesday, including 16 mine-laying vessels.
Media cited sources saying Iran has begun laying mines in the Strait of Hormuz, but on a limited scale, with only “dozens” recently laid. Reports also indicate that Iran retains over 80% of its small ships and mine-layers and could theoretically lay hundreds of mines in the channel. Other media estimates suggest Iran has a stockpile of 2,000 to 6,000 mines.
According to reports, UK Defense Secretary John Healey stated at the British military headquarters in North London, “The reports are becoming clearer; the Iranians may have started mining the strait.” He also pointed out that during the US-Israel-Iran conflict “it’s almost impossible” to clear mines, and the best way to reopen the Strait of Hormuz is to de-escalate the geopolitical situation.
Commentary believes Healey’s remarks are in sharp contrast to Trump’s Wednesday comments. When pressed by reporters about whether Iran is mining the Strait of Hormuz, Trump stated, “We don’t think so.” He also said the US military has almost destroyed all Iranian mine-laying vessels. Iran’s Deputy Foreign Minister later denied Iran is currently laying mines.
Iran’s new Supreme Leader: Will not give up revenge, will continue blockade, and study opening new fronts
According to Xinhua, Iran’s new Supreme Leader Mojtaba Khamenei issued his first public statement since taking office on Thursday, declaring Iran will continue to use the blockade of the Strait of Hormuz as “a tool to put pressure on the enemy,” and will study “opening new battlefields on enemy’s inexperienced and vulnerable fronts.”
The statement emphasized Iran “will never give up revenge,” aiming not only to avenge the slain former Supreme Leader Ali Khamenei, but also every Iranian killed. The statement also called for regional neighbors to quickly close US military bases, saying “the US claim of bringing security and peace is nothing but a lie.”
Mojtaba, 56, is the son of Ali Khamenei, who died in a US-Israeli strike during the early phase of military action against Iran on February 28.
Media commentary Thursday said that both the US and Iran are taking tough stances, providing very limited signals for easing the oil market.
Media cited insiders saying that behind-the-scenes negotiations between Iran and US allies are “still far from” finding a solution to reopen the Strait of Hormuz.
Iranian President Pezeshkian posted the most specific ceasefire conditions so far on social media Wednesday: Iran needs to receive “strong guarantees from the international community against future aggression” and war compensation.
The closure of the Strait of Hormuz has triggered the largest disruption in oil supply in history. On Wednesday, the International Energy Agency (IEA), whose members include more than 30 countries, announced it will release a record-breaking 400 million barrels of strategic oil reserves, with the US releasing 172 million barrels. However, the news failed to effectively calm oil prices; US crude only briefly fell after the IEA announcement before closing up more than 4% Wednesday.
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