Strait of Hormuz blockade hurts Iran’s economy, threatens to spike energy prices

The U.S. blockade on the Strait of Hormuz has effectively shut down trade to and from Iran’s ports, cutting off an estimated 90 percent of the Middle Eastern country’s economy as the Trump administration looks to get Tehran back to the negotiating table, according to military officials.

But the blockade, while already putting pressure on Tehran to continue with peace talks, is also likely to drive up U.S. energy prices if it remains in place beyond a few days. What’s more, it’s unclear how long Tehran will hold out and refuse to make painful concessions.

“It’s hard for it not to have an impact on them,” retired Vice Adm. Kevin Donegan, a former commander of the Navy’s Fifth Fleet — the naval arm responsible for operations across the Middle East — said of the blockade on Iran. “But remember, the Iranian regime cares less about the suffering that may be felt by their people. … Their ability to just say, ‘Okay, we’re going to let this keep going, because we think we can outlast the Americans,’ is unknown for how long.”

Washington’s blockade in the strait, which began Monday, has so far caused 13 ships to make “the wise choice of turning around,” Joint Chiefs of Staff Chair Gen. Dan Caine told reporters at the Pentagon Thursday. He warned that should vessels not comply with the blockade, “we will use force,” including boarding such ships.

Caine said American forces are monitoring the Iranian coastline and ports and will “actively pursue any Iranian-flagged vessel or any vessel attempting to provide material support to Iran.” This includes “dark fleet vessels carrying........

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