Market relief from supply efforts
Oil prices retreated as investors weighed efforts by the US and Israel to ease concerns over the Iran war and restore flow through a critical shipping channel. The retreat came after six Western allies expressed readiness to contribute to efforts ensuring safe passage through the Strait of Hormuz, signaling a potential shift in how the international community might address the blockade that has strangled global energy supplies.
The closure of the strait has roiled oil markets and forced traders to adjust benchmarks used to price the bulk of crude supply across the Middle East. Nearly 100 ships have passed through the waterway since the start of March, according to data analyzed by BBC Verify, but around 20,000 seafarers remain stuck on approximately 3,200 vessels west of the strait due to the Iranian blockade, according to the International Maritime Organization.
Coalition takes shape with limits
On Thursday, leaders from Japan, Germany, Italy, the Netherlands, and the United Kingdom released a joint statement condemning Iran's attacks on commercial vessels and "the de facto closure of the Strait of Hormuz by Iranian forces." The signatories expressed readiness "to contribute to appropriate efforts to ensure safe passage through the Strait" and begin "preparatory planning."
The statement represented a diplomatic victory after initial resistance. French President Emmanuel Macron initially opposed forming any coalition except as part of a post-war agreement with Iran. Dutch Prime Minister Marc Rutte and British Prime Minister Keir Starmer persuaded Macron to lift his opposition to the political statement while deferring discussion of practical implementation steps. Japan joined at the last minute, with Prime Minister Sanae Takaichi scheduled to meet Trump at the White House on Thursday.
However, the commitment carries significant limitations. France, Germany, Italy, and Japan have all previously ruled out sending naval vessels to the strait during the war. The statement makes no commitment to deploy ships or other military resources. Trump warned that the US would remember which allies failed to step up, while stating the US could reopen the strait with just Israel and Gulf countries.
Military pressure on Iranian positions
The Pentagon is targeting mine-laying vessels that help Iran maintain its blockade of the strait, with military leaders describing the operation as essential to addressing the closure. The US military is conducting strikes on Iranian anti-ship positions along the shores of the Strait of Hormuz to diminish Iran's ability to attack oil tankers.
The UK has dispatched two warships to the region and sent military officers to CENTCOM headquarters in Tampa, Florida to begin planning for a potential joint effort to reopen the strait. The US Navy is preparing for mine-countermeasure operations but needs allied help to augment its capabilities and secure the sea lanes.
Broader economic consequences
The strait closure has become the central crisis for the White House in the war. As long as the Iranian blockade holds and Gulf oil remains trapped, President Trump cannot end the war and declare victory even if he chooses to do so. Treasury Secretary Bessent indicated the US may remove sanctions on Iranian oil stranded in tankers as part of broader efforts to increase global supply. Brazil's energy regulator ordered Petrobras to supply fuel from canceled auctions to help ease market pressures. India's Gujarat state cleared a new Tata Power deal to resume long-term supply, part of a broader effort by multiple nations to stabilize energy markets disrupted by the strait closure.
