Iran Closes Strait of Hormuz After Striking Cargo Ship

Iran's Islamic Revolutionary Guard Corps navy declared the Strait of Hormuz closed until further notice Saturday after striking a cargo vessel in the strategically vital waterway, defying an ultimatum from the United States in a sharp escalation of the ongoing conflict between the two countries.

State media reported that the IRGC navy characterized the struck vessel as "unauthorised" and announced the closure of the strait, through which roughly 20 percent of the world's oil passes. The move came as the United States and Iran have been engaged in a military confrontation that began in late February, when U.S. and Israeli strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei.

Shipping companies faced deepening uncertainty as both Washington and Tehran vied for control of the narrow passage between the Persian Gulf and the Gulf of Oman. Despite ongoing Iranian attacks, maritime traffic through the strait had seen a brief uptick in recent days before the latest escalation, according to naval observers.

The IRGC said it blamed "outside interference from foreign powers" for the closure and that the strait would remain shut until further notice, according to Iran's Tasnim news agency. The closure appeared to cut across diplomatic efforts underway in the region, with some reporting that the IRGC's move was "contradicting expected Iran-Oman deal," a reference to reported talks between Tehran and Muscat on a framework for safe commercial passage.

Markets continue to watch these developments closely as oil has swung from $58 to $119 and back down to $71, driven almost entirely by the U.S.-Iran war that resumed in February.

President Donald Trump posted on social media Saturday that Iran had made threats "to assassinate, or attempt to assassinate" him, and said "1,000 missiles are Locked and Loaded and aimed at the Islamic Republic of Iran, with thousands more to immediately follow" should Iran act on those threats. Iran's new Supreme Leader, Mojtaba Khamenei — son of the slain Ayatollah — said hours later that retaliation for his father's death "is the will of our nation and must certainly be carried out."

The closure of the strait is already sending economic tremors through the American heartland. Farmers in Louisiana and other agricultural states reported severe financial strain from soaring fuel and fertilizer prices tied to the conflict. Nearly half of global exports of urea, a key nitrogen fertilizer, originate in the Persian Gulf region. One Louisiana farming family said they were running roughly $120,000 to $130,000 over their fertilizer budget, putting their operation in jeopardy.

Agriculture pilot Reed Keahey, who services farms in northeast Louisiana, said a gallon of Jet-A fuel that cost $2.46 in February, just before the war broke out, peaked at $4.11 in May. As of last week it stood at $3.18 and was rising again.

"Right now, it's a game of survival," Keahey said. "If the farmers aren't in business, then I'm not in business."

According to the American Farm Bureau Federation, U.S. farm bankruptcies rose 46 percent in 2025 compared with the prior year, a figure that preceded the current conflict's full economic impact.

The Wall Street Journal reported this week that Israel alerted U.S. officials to fresh Iranian plots to kill Trump. The White House declined to comment on that report, though Trump appeared to reference such threats during the recent NATO summit in Turkey, saying, "They want to take out the U.S. leader — me."

Iran rushing its own ships through the congested strait even as it attacks foreign vessels has compounded the logistical chaos for international shippers, who are caught between competing American and Iranian demands over navigation rights in one of the world's most critical chokepoints.