The US military has intensified its maritime blockade around the Strait of Hormuz, ordering an additional 20 commercial vessels to avoid Iranian ports last week, as negotiations to reopen the critical waterway remain deadlocked. President Donald Trump has indicated a willingness to wait for Iran's domestic economic pressures to mount, postponing any new military offensive.
On July 13, 2026, vessels were seen navigating near Khor Fakkan on the UAE's east coast amid the ongoing crisis. President Trump stated on the same day that the US would "take over" the Strait of Hormuz and be compensated for safeguarding the route, as the standoff between Washington and Tehran over this strategic chokepoint continues to deepen.
With talks on resuming navigation through the Strait of Hormuz at an impasse, the US Navy has shown no signs of easing its maritime pressure. Last week, the US military, acting under its blockade directives, ordered 20 more merchant ships to change course and steer clear of Iranian ports. The US Central Command announced on Sunday that it has now guided a total of 55 commercial vessels to alter their routes, up from 35 on August 2. The US has also disabled two ships and conducted boarding inspections on two others to enforce compliance.
The rising number of vessels being diverted underscores how far the US and Iran remain from resolving a crisis that has disrupted the Strait of Hormuz for over five months. Before the conflict erupted in February, roughly one-quarter of the world's seaborne crude oil and one-fifth of its liquefied natural gas were transported through the strait.
Iranian Foreign Minister Abbas Araghchi, quoted by the semi-official Tasnim news agency affiliated with the Islamic Revolutionary Guard Corps, stated on Sunday that restarting talks is impossible as long as the US continues to violate a memorandum of understanding signed in June and refuses to compensate for those breaches. Araghchi noted that "mediators are still actively working to find a path to restart negotiations."
President Trump, who had been optimistic last week about a potential deal with Iran, told Axios he now intends to let Iran's economic difficulties worsen. "We're playing it low-key," Trump said. "We're just talking and watching, waiting to see Iran face ultra-high inflation and an empty treasury." The President also posted a chart on Truth Social showing the steep decline of the Iranian rial in 2025, with the caption: "Iran is out of money, and its currency is worthless."
Iranian officials have presented a set of stringent conditions for reopening the Strait of Hormuz, including the US lifting its maritime blockade and all sanctions, withdrawing US troops from the Middle East, paying war reparations, and unfreezing Iranian assets abroad. Araghchi revealed that Iran is in talks with Oman to finalize an agreement on navigation routes through the strait, which he described as being in its final stages. However, he emphasized that this agreement does not represent a broader reopening of the Strait of Hormuz. Oman has confirmed that its consultations with Tehran are proceeding in a positive and constructive atmosphere and has called on all parties to cease repeated attacks on ships transiting the strait to create space for diplomacy.
Iran's continued attacks on vessels in the Strait of Hormuz, alongside the Houthi group's ongoing assaults on Red Sea shipping, have led to both routes being widely avoided by commercial operators. The UAE reported on Saturday that a tanker owned by the Abu Dhabi National Oil Company was struck by an Iranian missile while attempting to cross the strait early that morning. The Iran-backed Houthi group in Yemen claimed responsibility on Sunday for attacks on a refinery in Saudi Arabia and a facility at the Yemeni Red Sea port of Mokha.
Negotiating positions are hardening. Warren Patterson, head of commodities strategy at ING, wrote in a research note on Friday that "both sides have shown little willingness to compromise, making it very difficult to reach a sustainable agreement." The bank maintains its forecast for an average Brent crude price of $80 per barrel this quarter and expects crude oil shipping flows to gradually return to normal by the third quarter, though it warns of significant risks and uncertainties to its base case. Patterson noted that despite recent diplomatic progress, the escalating rhetoric and erosion of trust between the US and Iran mean the situation could deteriorate further. "The situation could take a sharp turn for the worse," he added.
Data from shipping tracker Kpler showed that only eight vessels were confirmed to be transiting the Strait of Hormuz on Friday, a 33% drop from the previous day. International oil prices rose on Monday, with the global benchmark Brent crude futures up nearly 1% to $84.22 per barrel, while US West Texas Intermediate crude futures gained 0.6% to $78.63 per barrel.
Iranian state media last week disclosed a draft proposal to tighten navigation rules in the Strait of Hormuz, which would ban US and Israeli vessels from passing through. Ships from hostile nations would be required to pay compensation before being granted transit. The semi-official Fars news agency reported that the draft is now under review by the Iranian parliament. The initial text of the draft stipulates that violators would face a fine equivalent to 20% of the total value of the cargo on board.