Iran Threatens Hormuz Oil Blockade as US Expands Sanctions and Rial Slides 4.5%
Updated
Updated · The Guardian · Aug 24
Iran Threatens Hormuz Oil Blockade as US Expands Sanctions and Rial Slides 4.5%
3 articles · Updated · The Guardian · Aug 24
Summary
Mohsen Rezaei warned Iran would unleash “earthquake-like” retaliation if countries join new US sanctions, saying “not a drop of oil” would leave the Gulf through the Strait of Hormuz.
The threat comes as Washington prepares secondary sanctions on any country or entity trading with Iran, while a US naval blockade has already left Iranian crude exports “virtually stopped,” according to Iran’s central bank governor.
That squeeze has pushed the rial to 1.992 million per dollar on the unregulated market, down 4.5% since Trump announced a “crushing economic operation” last week, with the White House arguing Iran’s economy is nearing collapse.
The UAE, Iran’s biggest Middle East trading partner, said it would end all trade with Tehran, but China and Russia have so far resisted US pressure; Beijing again rejected unilateral sanctions and had previously told firms to ignore US warnings.
Shipping through Hormuz remained severely disrupted over the weekend, raising pressure on energy markets and sharpening the risk that the US shift from military action to economic warfare could trigger a wider regional confrontation.
With the UAE severing Iran's financial lifeline, can Tehran survive the economic strangulation before global energy markets collapse?
Will China's shadowy ghost fleets successfully bypass the unprecedented US blockade, or is Iran's economy truly facing imminent ruin?
Strait of Hormuz Blockade 2026: Iran’s Economic Collapse, U.S. Naval Strategy, and Global Energy Disruption
Overview
In 2026, U.S. and Israeli military strikes on Iran led Tehran to close the Strait of Hormuz, triggering a U.S. naval counter-blockade. This dual blockade halted global shipping, causing oil exports from Iran to collapse and the Iranian rial to plummet. The resulting economic crisis sparked inflation, wage arrears, and widespread unrest, while the regime responded with harsh crackdowns. Globally, oil and gas prices soared, emergency reserves were tapped, and energy supply chains were thrown into chaos. Meanwhile, new regional alliances formed, and military tensions escalated, raising the risk of wider conflict if diplomacy fails.