Iran Threatens to Block Persian Gulf Oil Exports Over US Sanctions

Mohsen Rezaee, Secretary of Iran’s Supreme National Security Council, issued a warning to neighboring Gulf states on August 22, stating that cooperation with the American economic pressure campaign against Tehran would be considered an act of war. The official threatened to close the Strait of Hormuz, which would prevent oil from leaving the Persian Gulf.

The Strait of Hormuz is a narrow waterway located between Iran and Oman that facilitates approximately 25% of the global seaborne crude oil trade. A blockade of this route would disrupt global supply chains and impact energy prices for both producers and consumers.

The region has experienced heightened instability following military strikes launched by the US and Israel against Iran in late February 2026. In response to these events, Iran has asserted control over shipping lanes in the strait.

Prior to the escalation of the conflict, Iran exported between 1.3 and 1.5 million barrels of oil per day. Following enforced blockades and operational disruptions linked to US sanctions, these exports have fallen to below 300,000 barrels per day at their lowest points.

Countries such as Saudi Arabia and the UAE rely on the waterway for the majority of their seaborne oil exports. Additionally, China, a major importer of oil, faces potential impacts from the threat. The shipping and insurance industries have seen rising risk premiums for vessels using the strait due to the ongoing uncertainty.