US Navy Blockade at Hormuz Tests Iran’s Economic Lifelines

The United States began a naval blockade of Iran at 14:00 GMT as part of its pressure campaign in the Iran war, which Tehran denounces as piracy. The Strait of Hormuz, crucial for roughly 80% of Iran’s oil exports and a major slice of global supply, remains central to the hit to Iran’s economy, with oil prices hovering around $90–$100 a barrel and monthly revenues higher than pre-war levels but vulnerable to sustained disruption. Iran has some floating crude reserves and is exploring an overland rail link to China to diversify routes, though transporting oil by rail is unproven and logistically difficult. Most Iranian oil sales are tied to China, making Beijing a key factor in the standoff. Analysts say the blockade will hurt Iran’s economy, but its duration and outcome are uncertain, leaving room for either a ceasefire or escalation.