Iran warns US: Strait of Hormuz stays closed until demands met

Iran’s Revolutionary Guards said Sunday that the Strait of Hormuz would remain closed until the US meets Tehran’s demands, including an end to sanctions and compensation for war damage. The statement came as Iran’s navy conducted large-scale drills near the strategic waterway, which carries about a fifth of the world’s oil. The blockade has already rattled markets, sending crude prices higher and raising fears of supply disruptions.

The standoff reflects years of escalating tensions between Washington and Tehran. In 2018, President Donald Trump pulled the US out of the Iran nuclear deal and reimposed sanctions that have crippled Iran’s economy. Iran has responded with a mix of proxy attacks, nuclear expansion and now this direct threat to choke off global oil flows. The Revolutionary Guards, a powerful branch of Iran’s military, have long vowed to respond to what they call American “economic warfare.”

Oil prices jumped on Sunday as traders reacted to the threat. Brent crude, the global benchmark, rose nearly 2% in early trading. The US has taken a cautious approach, with Trump saying he prefers negotiations over confrontation. But the Revolutionary Guards’ latest move signals Iran is willing to raise the stakes further, even at the risk of a wider conflict. Saudi Arabia, a key US ally, has already rerouted some oil shipments away from the strait.

If Iran follows through, the economic fallout could be severe. The strait is a chokepoint for about 21 million barrels of oil per day. A prolonged closure would disrupt supply chains, push up fuel costs and strain economies already struggling with inflation. For now, Iran’s strategy appears aimed at pressuring the US to ease sanctions—but the gamble could backfire, drawing a stronger military response or pushing other Gulf states to take sides. The coming days will show whether this is a bluff or the start of a deeper crisis.