Bloomberg: Trump tells aides to prep for lengthy Hormuz blockade

President Donald Trump told his aides to prepare for an extended US Naval blockade of the Strait of Hormuz, the Wall Street Journal reported, as the US looks to intensify economic pressure on Iran as the war enters its third month, Bloomberg reports.

The president, in meetings with top aides, decided to continue putting pressure on Iran’s ability to export oil by stopping any vessel heading to or from the Islamic Republic’s ports, the newspaper reported on Tuesday night. Trump determined that was a less risky option than resuming bombing or extracting the US from the conflict entirely, the outlet said.

The decision suggests that the US could be moving into a lengthy period with the fighting largely halted, but no durable resolution to the conflict, and the status of traffic through the Strait of Hormuz still uncertain.

Iran has signaled it may be willing to accept an interim deal to reopen the strait in exchange for Washington ending its blockade of Iranian ports, while postponing more complex negotiations over the country’s nuclear program. It is insisting on keeping some control over shipping through the strait, which Washington is unlikely to accept.

Trump rejected that offer from Iran, according to the WSJ.

Brent crude rose for a seventh straight session to settle above $111 a barrel, as concern grows of a protracted peace process that could keep Hormuz shut for an indefinite period.

The war’s ripple effects were underscored when the United Arab Emirates announced on Tuesday it was leaving OPEC, dealing a blow to the oil cartel and its leader Saudi Arabia. The UAE, which can pump more crude than is allowed under its OPEC quota, has long chafed at the group’s restrictions.

The warring sides started a ceasefire around April 7 and hostilities may resume if they fail to agree to fresh talks, following an inconclusive first round in Pakistan in mid-April.

The strategic Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas flowed before the conflict began, remains at a virtual standstill.

Foreign leaders are increasingly frustrated with the diplomatic impasse and the continued shutdown of the waterway, which has led to fuel rationing across much of Asia and Africa and fears of a global economic slowdown.

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