Iran Threatens to Block More Sea Lanes as U.S. Military Strikes Escalate

Iran's Islamic Revolutionary Guard Corps (IRGC) has threatened to close additional maritime export routes vital to global energy markets, escalating a direct military confrontation with the United States. The threat follows Iran's closure of the Strait of Hormuz and a reimposed U.S. naval blockade on Iranian ports, further imperiling global supply chains.

Widening Threats to Global Shipping

The IRGC issued a statement declaring that "Regional energy exports are either shared by all, or denied to all," according to Iran’s IRNA state news agency. The corps warned it would shut "all other export corridors that benefit the U.S. and its allies." The Strait of Hormuz, which Iran says will remain closed until "the end of America’s evils," typically handles about a fifth of global oil and gas shipments.

Market analysts believe the threat could extend to the Bab el-Mandeb strait, a critical chokepoint connecting the Red Sea to the Gulf of Aden. Iran's Houthi allies in Yemen have previously demonstrated the capability to disrupt shipping in this lane and have warned they are prepared to close it, a move a Houthi official claimed could send oil prices to $200 a barrel.

Escalating Military Exchanges

The heightened rhetoric comes amid a sharp increase in military action. The U.S. military said it conducted a seven-hour wave of strikes against dozens of Iranian military targets near the Strait of Hormuz and along the coast. U.S. Central Command stated the operation was intended "to continue degrading Iranian capabilities used to attack commercial shipping."

In response, the IRGC claimed it targeted U.S. military facilities across the region, including:

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• The U.S. Fifth Fleet in Bahrain
• A logistics facility in Kuwait’s Mina Abdullah
• A U.S. air base in Azraq, Jordan

Kuwait's state news agency confirmed a fire was brought under control at a site targeted in the attacks. Meanwhile, Jordanian air defenses intercepted three ballistic missiles that entered its airspace from Iranian territory on Wednesday.

Market Impact and U.S. Response

The escalating conflict and threats to major oil arteries have rattled energy markets. Oil prices rose on Wednesday, with both Brent crude and West Texas Intermediate (WTI) closing at their highest levels in over a month on Tuesday amid fears of a severe supply disruption.

U.S. President Donald Trump stated he would hit Iranian power plants and bridges if Tehran does not resume negotiations. In an interview with Fox News, Trump said he had told Iranian counterparts, "you better make a deal." He also scrapped a previously floated idea of imposing a 20% fee on ships transiting the Strait of Hormuz.