Trump says Iran will be 'hit very hard' if Hormuz Strait not open soon as oil prices fall

August 5, 2026

The Trump administration announced that diplomatic talks are progressing toward reopening the Strait of Hormuz, which Iran has blocked since late February, with Treasury Secretary Scott Bessent suggesting a deal could be reached within days. President Trump warned Iran would be "hit very hard" if the vital waterway doesn't reopen soon, while oil prices fell nearly 5% on hopes the disruption might end. The strait previously handled one-fifth of global oil and natural gas supplies before the conflict, and its closure—combined with Houthi blockades of Saudi ports—has driven fuel prices to elevated levels worldwide.

Who is affected

Iran (facing potential military action and involved in the conflict)
U.S. government and military (depleted missile stockpiles, conducting naval blockade)
Oman and Qatar (serving as mediators)
Yemen's Iran-backed Houthis (imposing Red Sea blockade)
Saudi Arabia (ports blockaded in the Red Sea)
Motorists globally, particularly in the UK and U.S. (facing higher fuel prices)
Oil companies including BP, Shell, Chevron, and Exxon Mobil (reporting increased profits)
Commercial shipping vessels and crews (14 crew members rescued from sunken Indian-flagged vessel)
India (lost a flagged vessel near Yemeni waters)

What action is being taken

Secretary of State Marco Rubio and Treasury Secretary Scott Bessent are conducting talks on reopening the Strait of Hormuz
Iran is talking with Oman about a new mechanism for vessels going through the Strait
Qatar is continuing mediation efforts between Washington and Tehran
The U.S. is maintaining a naval blockade of Iranian ports
Yemen's Houthis are imposing a blockade on Saudi Arabia's Red Sea ports
US Central Command is keeping the southern route through the Strait open for commercial vessels

Why it matters

The Strait of Hormuz is a critical global energy chokepoint that handled approximately one-fifth of the world's daily oil and liquefied natural gas supplies before the conflict. Its closure has created significant economic consequences, driving fuel prices to crisis levels worldwide—with UK petrol reaching £1.60 per liter and U.S. gasoline exceeding $4 per gallon. The conflict has created dangerous shipping conditions throughout the Middle East, with vessels being attacked and sunk, and has depleted nearly all U.S. long-range precision missile stockpiles. The volatility and recurring failures of diplomatic efforts have destabilized global oil markets, affecting consumers, businesses, and economies worldwide while generating substantial profits for major oil companies.

What's next

Treasury Secretary Bessent indicated a deal to reopen the Strait of Hormuz could potentially be agreed as soon as Wednesday (the day after his statement)
Secretary of State Rubio stated they are hoping for finality in the discussions "very shortly"
Qatar will continue mediation efforts, though no direct talks are currently planned

Read full article from source: BBC