On Wednesday, the Trump administration imposed further sanctions on Iran as part of a broad economic pressure campaign amid the ongoing conflict. This latest move targets a newly established Iranian agency attempting to regulate shipping through the Strait of Hormuz.
The announcement of these sanctions occurred late Wednesday, following U.S. military strikes on an Iranian military installation after Iranian attack drones were taken down. This information was provided by U.S. officials who spoke on the condition of anonymity as they were not authorized to discuss the matter publicly.
The sanctions, initially reported by The Associated Press, represent the latest U.S. strategy to apply economic pressure alongside military actions to persuade Iran’s leaders to reach an agreement that would conclude the war and reopen the waterway, through which a significant portion of the world’s oil and natural gas is transported. President Donald Trump expressed optimism about an imminent deal, although negotiations continue.
The effective closure of the Strait by Iran has led to rising energy prices and additional costs, increasing political pressure on Trump and other Republicans as the midterm congressional elections approach.
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” stated Treasury Secretary Scott Bessent.
The sanctions specifically target Iran’s Persian Gulf Strait Authority and any individual or entity working with this agency, which was introduced earlier this month. This agency regulates transit through the strait and imposes tolls that could amount to $2 million per vessel.
Iran’s Revolutionary Guard has justified this regulatory role, asserting that the safe passage through the vital waterway is through its designated corridor and warning that deviation could lead to attacks and other dangers.
Iran’s control over the strait has led to global energy disruptions since the U.S. and Israel initiated the conflict on February 28. Oil, gas, and related prices have surged, and experts suggest that the recovery of shipping and prices might take weeks or even months once the strait reopens.
In response, the U.S. has maintained a blockade on Iranian ports for over a month. Trump has stated this blockade “will remain in full force and effect until an agreement is reached, certified, and signed.”
The introduction of these economic sanctions coincides with heightened diplomatic efforts between Washington and Tehran, aiming to resolve the conflict and establish a long-term solution to their disputes.
On Wednesday, Trump remarked that Iran is “negotiating on fumes,” indicating that both parties are nearing a deal, despite the U.S. military’s “self-defense” strikes on missile sites and mine-laying boats reported on Monday. These latest strikes may add complications to the negotiations.
“They want very much to make a deal,” Trump stated at a Cabinet meeting on Wednesday. “So far, they haven’t gotten there. We’re not satisfied with it, but we will be — either that or we’ll have to just finish the job.”
The Republican president has reiterated his warning of renewed conflict if no agreement is reached, although he has stepped back from such threats several times in recent months.
