U.S. Energy Secretary Chris Wright declared on Wednesday that Iran no longer has the ability to close the Strait of Hormuz, a critical waterway for global oil supplies. The U.S. has deployed naval escorts to ensure uninterrupted passage, allowing 20 million barrels of oil to transit the strait in the past 24 hours, according to Wright. The U.S. could reimpose a naval blockade if Iran fails to meet Washington's demands.
Oil Flows Resume
Since the U.S.-Iran agreement to reopen the strait, oil shipments have risen to around 4.8 million barrels per day, though exports remain below prewar levels. The Joint Maritime Information Center has downgraded the threat level for ships crossing Hormuz to "moderate."
Iran-Oman Talks on Administration
Iran and Oman have agreed to discuss the future administration of the Strait of Hormuz, emphasizing their "sovereignty and sovereign rights" over their territorial waters. Oman has committed to "toll-free safe passage," while Iran has denied imposing any fees on ships transiting the strait. U.S. officials have rejected the idea of tolls on an international waterway.
U.S. Military Posture
Wright stated that the U.S. can maintain normal oil flows through Hormuz even if a broader peace deal with Iran fails. The U.S. Navy has lifted its blockade on Iran, and the Treasury Department has waived sanctions on Iran's oil sales through August. President Trump previously threatened to take control of the strait if negotiations collapsed, a move that reportedly strained talks.
Global Market Impact
Benchmark oil prices fell more than $3 on Wednesday, the lowest since before the Iran war in February, as supply concerns eased with the resumption of oil flows through Hormuz. The strait is a key transit route for about one-fifth of the world's crude oil.