Relative calm returned to the strategic waterway after several days of clashes involving Iranian and US forces near the strait, a critical global energy chokepoint through which roughly one-fifth of the world’s oil supply passed before the conflict erupted in late February.

US Secretary of State Marco Rubio said Washington was awaiting Tehran’s response to a proposal that would formally end hostilities before broader negotiations begin on disputes including Iran’s nuclear program.

More than 24 hours after Rubio said a response was expected “within hours,” Iranian authorities had not publicly reacted.Rubio met Qatari Prime Minister Mohammed bin Abdulrahman Al-Thani in Miami on Saturday, where both sides discussed cooperation to “deter threats and promote stability and security across the Middle East,” according to US State Department spokesperson Tommy Pigott.

The statement did not directly reference Iran.The Qatari LNG tanker Al-Kharaitiyat was sailing toward the Strait of Hormuz en route to Pakistan, according to LSEG shipping data. Sources familiar with the matter said Iran had approved the transit to signal goodwill toward Qatar and Pakistan, both of which have played mediating roles during the conflict.

If completed, the voyage would mark the first passage of a Qatari LNG carrier through the strait since fighting began following US-Israeli airstrikes across Iran on Feb. 28.Iranian military officials nevertheless maintained a confrontational tone.

Brigadier General Mohammad Akraminia, an Iranian army spokesperson, warned countries enforcing US sanctions against Tehran that they would “face difficulties crossing the Strait of Hormuz,” according to the semi-official Tasnim news agency.Recent flare-ups have tested a ceasefire announced on April 7, with clashes intensifying in and around the strait over the past week.

The United Arab Emirates said on Friday that its air defenses intercepted two ballistic missiles and three drones launched from Iran, leaving three people moderately injured.Iran has repeatedly targeted Gulf states hosting US military facilities during the conflict, while accusing Washington of violating the ceasefire through continued naval operations and sanctions enforcement.

On Friday, Iranian media reported sporadic clashes between Iranian forces and US vessels in the strait. The US military separately said it struck two Iran-linked vessels attempting to enter an Iranian port, forcing them to reverse course after a fighter jet targeted their smokestacks.

Iran’s Islamic Revolutionary Guard Corps responded with threats to retaliate against US interests in the region if Iranian commercial vessels were attacked again. Iranian media quoted the Guards as saying any strike on Iranian tankers would trigger a “heavy attack” on American facilities and ships.

The conflict has disrupted shipping traffic and heightened volatility in global energy markets. Tehran has largely restricted non-Iranian shipping through the Strait of Hormuz since the war began, significantly reducing maritime flows through one of the world’s most strategically vital waterways.

US President Donald Trump, who is scheduled to visit China next week for talks with President Xi Jinping, has faced mounting pressure from allies and financial markets to stabilize the situation. The war has strained relations with European partners and raised fears of broader economic fallout tied to energy supply disruptions.

Speaking after talks with Italian Prime Minister Giorgia Meloni, Rubio questioned why some US allies had not more forcefully backed efforts to reopen the strait, arguing that allowing Iran to dominate an international shipping lane would establish a dangerous precedent.

German Chancellor Friedrich Merz said European governments remained aligned with Washington on preventing Iran from acquiring nuclear weapons while attempting to narrow diplomatic differences over the conflict. Britain said it would deploy a warship to the Middle East in preparation for a potential multinational maritime security mission alongside France once conditions permit.

At the same time, Washington expanded economic pressure on Tehran. The US Treasury on Friday imposed sanctions on 10 individuals and companies, including entities in China and Hong Kong, accused of helping Iran’s military procure weapons components and materials linked to the production of Shahed drones.

A report in the Washington Post citing a CIA assessment said Iran could withstand US maritime pressure for several more months without severe economic damage, potentially limiting Washington’s leverage. A senior US intelligence official later rejected the characterization of the assessment as inaccurate.

Iranian Foreign Minister Abbas Araghchi accused Washington of undermining diplomatic efforts, saying Friday that “every time a diplomatic solution is on the table, the US opts for a reckless military adventure.”

“Assuming Iran agrees to give what has been agreed to the Blockade will allow the Hormuz Strait to be open to all,” Trump said on social media, warning that failure to accept the proposal would result in intensified military action.

The remarks come amid indications that Washington and Tehran are nearing a one-page, 14-point memorandum of understanding aimed at ending the conflict and initiating further negotiations, according to a source familiar with the talks.

The proposed framework would declare an end to the war and launch a 30-day negotiating period to finalize arrangements covering maritime transit through the strait, limits on Iran’s nuclear program, and the lifting of US sanctions.

Iran’s Revolutionary Guards said on Wednesday that safe passage through the Strait of Hormuz would be ensured once US threats subside, adding that new procedures were being implemented for shipping, though no details were provided.The developments follow Trump’s decision to pause “Project Freedom,” a US naval mission intended to escort vessels through the waterway, citing progress in negotiations.

The blockade, however, remains in force.The Strait of Hormuz, a critical oil transit route, has been largely closed to international shipping since late February, when the United States and Israel launched military operations against Iran. The disruption has severely affected global energy flows and heightened geopolitical tensions.

According to sources, the draft memorandum could include provisions for Iran to halt nuclear enrichment activities, while the United States would lift sanctions and release frozen Iranian funds. Both sides would also gradually ease restrictions on shipping during the negotiation period.

The talks involve US envoys and Iranian officials engaging directly and through intermediaries, with Pakistan playing a mediating role, the source said.Despite the diplomatic progress, incidents in the strait have continued.

A French shipping company reported that one of its container vessels was struck in the waterway this week, with injured crew evacuated.Iran’s Foreign Minister Abbas Araghchi, speaking during a visit to China, said Tehran was seeking a “fair and comprehensive agreement” but did not directly address Trump’s latest comments.

The conflict, which began on February 28, has disrupted shipping and triggered repeated strikes on vessels and regional targets, underscoring the strategic importance of the Strait of Hormuz to global trade and energy markets.

Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, Takaichi said both countries would act with urgency to strengthen energy security amid a supply squeeze linked to reduced shipping through the strait.

Roughly one-fifth of the world’s oil typically transits through the Strait of Hormuz, with flows curtailed after Iran throttled shipping following attacks by the United States and Israel. About 80 percent of that oil is destined for Asia, according to the International Energy Agency.

“The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” Takaichi told reporters, adding that Japan and Australia would maintain close communication to respond to the situation.

Both governments said they would seek to enhance resilience and autonomy in energy supply chains. Australia is Japan’s largest supplier of liquefied natural gas, while Japan provides a share of refined fuel products, including diesel, to Australia.

The two sides issued a series of agreements covering energy, economic cooperation, defense and critical minerals. Albanese said the measures would help shield Australia from “global shocks” stemming from conflict in the Middle East.

Japan has also emphasized the importance of securing stable supplies of critical minerals used in semiconductors, electric vehicle batteries and defense systems. Australia has positioned itself as a key supplier of such resources, highlighting its reserves as an alternative to concentrated global supply chains.

Defense cooperation has expanded alongside economic ties, including a deal valued at around Aus$10 billion for Japan to supply Mogami-class stealth warships to the Australian navy.

In a separate foreign policy address in Vietnam over the weekend, Takaichi reiterated Japan’s commitment to a “free and open Indo-Pacific,” a strategy aimed at strengthening regional security and supply chain resilience.
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Trump made the remarks in a social media post after Merz said earlier this week that the United States was being “humiliated” by Iran’s leadership and questioned Washington’s strategy in the conflict, which has entered its third month and has disrupted global energy flows.

“The United States is studying and reviewing the possible reduction of Troops in Germany, with a determination to be made over the next short period of time,” Trump wrote.The threat marked the latest strain in relations between Washington and Berlin as Trump has repeatedly criticized NATO allies for refusing to support the U.S. military campaign against Iran, while European leaders have raised concerns over the economic consequences of prolonged instability in the Gulf.

Merz said on Wednesday that his personal relationship with Trump remained “as good as ever,” but added that he had “had doubts from the very beginning about what was started there with the war in Iran.”Speaking hours before Trump’s post, Merz said Germany and Europe were facing significant economic pressure from the closure of the Strait of Hormuz, the vital shipping route through which around one-fifth of global oil supply had moved before the conflict began on Feb. 28.

“We are suffering considerably in Germany and in Europe from the consequences of, for example, the closure of the Strait of Hormuz,” Merz said. “And in that regard, I urge that this conflict be resolved.”The waterway has remained effectively shut since hostilities intensified, adding to volatility in global energy markets and raising fears of wider supply disruptions across Europe and Asia.

Merz, who met Trump at the White House in March shortly after the U.S. and Israel launched bombardments against Iran, had then said Germany was prepared to work with Washington on a strategy for a post-conflict regional order if Iran’s current government were to fall.

He also warned that an extended war could inflict serious damage on the global economy.

Trump, however, has openly attacked the German chancellor in recent days. On Tuesday, he said Merz wrongly believed Iran should be allowed to possess a nuclear weapon and wrote that the German leader “doesn’t know what he’s talking about.”

“It’s no surprise that Germany is doing so poorly, both economically and in other respects,” Trump added.The dispute has revived memories of Trump’s first term, when he sought to withdraw about 9,500 of the roughly 34,500 U.S. troops then stationed in Germany, arguing Berlin was failing to spend enough on defense. That plan was announced in 2020 but never implemented, and former President Joe Biden formally halted it after taking office in 2021.

Germany hosts several major U.S. military installations, including the headquarters of U.S. European Command and U.S. Africa Command, Ramstein Air Base, and Landstuhl Regional Medical Center, the largest American military hospital outside the United States.

Merz said his government remained “on good speaking terms” with the Trump administration despite the latest dispute.

In a written message read on Iranian state television, Khamenei said Iran’s scientific and military capabilities, including its nuclear and missile programs, formed part of the country’s sovereign identity and would be defended like its territorial integrity.

“Ninety million proud and honorable Iranians inside and outside the country regard all of Iran’s identity-based, spiritual, human, scientific, industrial and technological capacities from nanotechnology and biotechnology to nuclear and missile capabilities as national assets,” he said.

He added that Iranians would protect those capabilities “just as they protect the country’s waters, land and airspace.”Khamenei has led Iran since Feb. 28, following an airstrike that killed his father, former Supreme Leader Ali Khamenei, during the early phase of the U.S.-Israel conflict with Iran.

In his statement, he also sharply criticized the U.S. military presence in the Gulf region, saying the only place Americans belonged in the Arabian Gulf was “at the bottom of its waters.”“By God’s help and power, the bright future of the Arabian Gulf region will be a future without America,” he said, adding that regional prosperity should be determined by neighboring states rather than outside powers.

His comments came as the Strait of Hormuz remains effectively under Iranian control following weeks of confrontation, severely disrupting global energy shipments through the strategic waterway that previously handled about one-fifth of world oil supply.

The remarks followed reports that Washington is advancing plans for an international naval coalition to reopen the strait and secure maritime transit after the conflict.According to a U.S. State Department cable seen by Reuters, Washington has invited partner countries to join a proposed coalition called the Maritime Freedom Construct (MFC), aimed at restoring shipping access and building what it described as a post-conflict maritime security framework for the Middle East.

“The MFC constitutes a critical first step in the establishment of a post-conflict maritime security architecture for the Middle East,” the cable said.France, Britain and other allied governments have discussed contributing to such an initiative but indicated they would only participate in efforts to reopen the Strait of Hormuz after active hostilities end.

Oil prices have remained volatile amid fears of prolonged disruption to Gulf shipping routes, with energy markets closely watching whether diplomatic efforts can reduce tensions between Washington and Tehran.

Even before the latest hostilities, analysts described Iran’s economy as deeply fragile, weighed down by sanctions, energy imbalances, inflation and declining exports. The impact of renewed strikes and the effective closure of Hormuz a critical artery for global energy shipments has sharply intensified those pressures.

The blockade threatens more than 90% of Iran’s annual trade, estimated at over $100 billion, according to analysts, cutting off vital oil exports that account for roughly 80% of government revenue. Estimates cited by experts suggest losses of around $435 million per day, potentially exceeding $13 billion monthly.

Energy infrastructure constraints are compounding the crisis. With limited storage capacity and continued production, Iran risks being forced to halt oil output within weeks, raising the possibility of long-term damage to oil fields and a permanent reduction in production capacity.

On the domestic front, economic indicators point to severe distress. The Iranian rial has sharply depreciated, while food inflation has surged into triple digits, eroding purchasing power and fueling social discontent.

Shortages of energy have also disrupted key industries such as steel, cement and petrochemicals.The blockade’s effects are further magnified by limited alternative trade routes. Infrastructure outside the Gulf, including overland corridors and non-Hormuz ports, can handle only a fraction of normal throughput, leaving Iran with few options to offset lost maritime access.

Internal divisions are also emerging over the management of foreign currency revenues and economic policy, with some officials warning that significant portions of export earnings are not reaching state coffers.

Former Iranian foreign minister Mohammad Javad Zarif has called for compromise, urging Tehran to consider limiting its nuclear program and reopening Hormuz in exchange for sanctions relief to prevent further economic deterioration.Analysts say the government’s response is driven less by economic logic than by strategic considerations.

Sanam Vakil of Chatham House said the conflict is viewed by Iran’s leadership as existential, limiting the likelihood of policy shifts despite economic strain.The longer-term outlook remains uncertain.

Researchers at Royal United Services Institute warn that postwar recovery could be hampered by damaged infrastructure, reduced access to regional financial networks and strained ties with Gulf partners, particularly the United Arab Emirates, a key trade hub for Iran.

With reconstruction costs expected to be substantial and trade channels constrained, the economic consequences of the conflict may prove more enduring than the military phase itself.

The announcement came a day after talks in Pakistan ended without agreement, underscoring persistent divisions over terms to end a conflict launched on Feb. 28 by the United States and Israel. The blockade is aimed at pressuring Iran to reopen the Strait of Hormuz and accept a broader settlement addressing its nuclear and missile programs, as well as its regional activities.

Trump indicated that diplomatic channels remain open, saying Iran had reached out to explore a possible resolution. “We’ve been called by the right people … and they want to work a deal,” he told reporters outside the White House.Iran signaled conditional openness to negotiations.

Judiciary chief Gholam Hossein Mohseni Ejei said discussions must proceed on the basis of “principles and logic,” while other officials warned that Tehran would respond if the situation escalates.The blockade drew sharp reactions from Iran, which threatened countermeasures targeting ports across the Arabian Gulf and Gulf of Oman, raising the risk that the two-week ceasefire declared earlier could collapse before its April 22 expiry.

At the core of the dispute remain differences over Iran’s nuclear program and control of the Strait of Hormuz, a critical global energy corridor through which roughly one-fifth of the world’s oil supply typically passes. Its closure has already disrupted markets and driven up oil prices.

U.S. Vice President JD Vance, who led the American delegation in the recent talks, said Iran had not provided assurances it would refrain from pursuing nuclear weapons capability. Tehran has long denied such intentions while defending its right to civilian nuclear development, including uranium enrichment.

Iran’s negotiating position, articulated by Parliament Speaker Mohammad Bagher Qalibaf, emphasized sovereignty over the strait, an end to hostilities, and compensation for wartime damage.

Iranian officials also dismissed the blockade as exaggerated, with parliamentary spokesperson Ebrahim Rezaei describing it as “more bluffing than reality.”Pakistan has indicated it may facilitate further dialogue, with Foreign Minister Ishaq Dar expressing willingness to host another round of talks, though no timeline has been confirmed.

Both sides have maintained firm public positions, with Trump warning that any Iranian attempt to challenge the blockade would be met with force, while Iranian foreign ministry spokesperson Esmaeil Baqaei said the measure risked further destabilizing the global economy.

In a telephone conversation, Merz also voiced “grave concern” over developments in the Palestinian territories and stressed that there must be no “de facto partial annexation” of the West Bank, according to a government spokesperson.

The call comes amid escalating tensions following the conflict launched on February 28 by Israel and the United States against Iran, which has increasingly threatened to expand into a broader regional war. German officials said Merz reiterated Berlin’s support for diplomatic efforts aimed at securing an understanding between Washington and Tehran.

Merz, who had initially backed the U.S.-Israeli military action, has shifted his stance as economic risks and security concerns intensify, including Iranian retaliatory strikes and disruptions to global energy flows.

He also indicated that Germany could contribute to ensuring maritime security in the Strait of Hormuz, a key global oil transit route, but only after hostilities cease and necessary conditions are in place.Shipping through the strait, which previously accounted for roughly one-fifth of global oil supplies, has been significantly disrupted amid Iranian threats targeting commercial vessels.

The situation has been further complicated by a partial naval blockade declared by U.S. President Donald Trump following stalled negotiations with Iran.

The announcement came a day after talks in Pakistan ended without agreement, underscoring persistent divisions over terms to end a conflict launched on Feb. 28 by the United States and Israel. The blockade is aimed at pressuring Iran to reopen the Strait of Hormuz and accept a broader settlement addressing its nuclear and missile programs, as well as its regional activities.

Trump indicated that diplomatic channels remain open, saying Iran had reached out to explore a possible resolution. “We’ve been called by the right people and they want to work a deal,” he told reporters outside the White House.

Iran signaled conditional openness to negotiations. Judiciary chief Gholam Hossein Mohseni Ejei said discussions must proceed on the basis of “principles and logic,” while other officials warned that Tehran would respond if the situation escalates.

The blockade drew sharp reactions from Iran, which threatened countermeasures targeting ports across the Arabian Gulf and Gulf of Oman, raising the risk that the two-week ceasefire declared earlier could collapse before its April 22 expiry.

At the core of the dispute remain differences over Iran’s nuclear program and control of the Strait of Hormuz, a critical global energy corridor through which roughly one-fifth of the world’s oil supply typically passes. Its closure has already disrupted markets and driven up oil prices.

U.S. Vice President JD Vance, who led the American delegation in the recent talks, said Iran had not provided assurances it would refrain from pursuing nuclear weapons capability. Tehran has long denied such intentions while defending its right to civilian nuclear development, including uranium enrichment.

Iran’s negotiating position, articulated by Parliament Speaker Mohammad Bagher Qalibaf, emphasized sovereignty over the strait, an end to hostilities, and compensation for wartime damage.

Iranian officials also dismissed the blockade as exaggerated, with parliamentary spokesperson Ebrahim Rezaei describing it as “more bluffing than reality.”
Pakistan has indicated it may facilitate further dialogue, with Foreign Minister Ishaq Dar expressing willingness to host another round of talks, though no timeline has been confirmed.

Both sides have maintained firm public positions, with Trump warning that any Iranian attempt to challenge the blockade would be met with force, while Iranian foreign ministry spokesperson Esmaeil Baqaei said the measure risked further destabilizing the global economy.

Donald Trump said on Sunday that U.S. forces would start blockading maritime traffic to Iranian ports, escalating tensions after negotiations failed to produce an agreement to end the conflict, putting a fragile two-week ceasefire at risk.

US Central Command said the blockade would take effect at 10 a.m. ET (1400 GMT) and would apply to all vessels entering or leaving Iranian ports across the Arabian Gulf and the Gulf of Oman. It added that freedom of navigation through Hormuz to non-Iranian destinations would not be impeded.

Shipping data showed several vessels adjusting routes in response. The Malta-flagged very large crude carrier Agios Fanourios I reversed course after attempting to enter the Gulf and is now anchored near the Gulf of Oman.

Other tankers, including the Pakistan-flagged Shalamar and Khairpur, continued operations, heading toward the United Arab Emirates and Kuwait respectively to load cargo.

The Liberia-flagged VLCC Mombasa B also transited the strait earlier on Sunday and is currently ballasting in the Gulf, according to vessel tracking data.Iran’s Islamic Revolutionary Guard Corps warned that any military vessels approaching the strait would be considered a violation of the ceasefire and would face a “decisive” response.

Despite rising tensions, shipping data showed that three fully laden supertankers passed through the strait on Saturday, appearing to be among the first vessels to exit the Gulf since the ceasefire agreement was reached last week.