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US-Israel-Iran War Live News: The battle between Washington and Tehran is increasingly moving from the skies and seas into the economic arena. As commercial traffic through the Strait of Hormuz falls sharply and two more vessels come under attack, the United States has warned Iran that it will intensify financial pressure and could keep its naval blockade in place indefinitely.
The warning comes as efforts to revive a ceasefire remain stalled and Tehran continues to demand major concessions before reopening the strategic waterway.
The latest escalation has put the global energy market on alert. The Strait of Hormuz handled more than 130 vessel movements a day before the war, but only nine commodity vessels crossed on Thursday, according to Kpler data cited by Reuters. Early Friday, tracking systems showed no visible crossings, although ships with transponders switched off may not appear in the data.
US-Israel-Iran War Live News: US Warns Iran of More Economic Pressure as Hormuz Crisis Deepens
The United States has made clear that its pressure campaign against Iran is far from over.
Treasury Secretary Scott Bessent said Washington plans to introduce additional measures designed to increase the economic cost for Tehran. The warning comes after months of sanctions and a US naval blockade that have already restricted Iran’s access to foreign currency and international trade.
The latest threat also reflects President Donald Trump’s decision to give economic pressure more time to work instead of immediately ordering another major military offensive. Trump recently said the US was “low-keying it” with Iran while allowing economic pressure to build.
US-Israel-Iran War Live News: Two More Ships Attacked in Strait of Hormuz
The economic warning came as tensions at sea intensified.
Two vessels operated by the United Arab Emirates’ state-owned Abu Dhabi National Oil Company were attacked while travelling through the Strait of Hormuz on Thursday evening. The UAE blamed Iran for the incident, while no injuries were reported. Iran had not immediately commented on the accusation.
The attacks have further increased the risks for shipping companies operating through the narrow waterway.
The latest incidents also reinforce concerns that commercial operators could continue avoiding the strait even if Washington and Tehran eventually reach a political agreement.
US-Israel-Iran War Live News: US Says Iran Blockade Can Continue ‘Indefinitely’
Washington is also preparing for the possibility of a prolonged confrontation.
US Defence Secretary Pete Hegseth said the American military has enough capacity to maintain its naval presence in the region by rotating ships.
“Indefinitely the United States Navy can maintain a blockade like that because we’ll rotate ships in and out, as we have, and we’ll continue to,” Hegseth told reporters during a trip to Panama.
The statement represents one of the clearest signs yet that the US does not expect the current pressure campaign to end quickly.
An indefinite blockade could further restrict Iran’s ability to export goods, earn foreign currency and maintain normal commercial activity.
US-Israel-Iran War Live News: Trump Chooses Economic Squeeze Over Immediate Military Escalation
Trump has repeatedly threatened further military action against Iran, but his recent statements indicate a more cautious approach.
In an interview with Axios, Trump said:
“We are low-keying it,” Trump said Sunday. “We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” Trump told the news outlet Axios.
The comments suggested that Washington believes Iran’s worsening economic situation could eventually force Tehran to make concessions.
The approach also gives the White House an alternative to launching another costly military operation while keeping pressure on Iran.
US-Israel-Iran War Live News: Iran Refuses to Reopen Strait Without Major Concessions
Tehran has not agreed to restore normal shipping through the Strait of Hormuz.
Iran wants Washington to remove economic sanctions and release frozen Iranian assets. Tehran has also demanded wider concessions linked to the war and the US blockade.
Iranian lawmakers have meanwhile backed a plan that would restrict vessels and equipment linked to the United States, Israel and other countries considered hostile by Tehran.
These demands make an immediate reopening of the waterway difficult.
For Iran, controlling or restricting shipping provides significant negotiating leverage. For the US, maintaining the blockade creates another source of pressure on the Iranian economy.
US-Israel-Iran War Live News: Strait of Hormuz Shipping Falls to a Fraction of Pre-War Levels
The latest shipping data illustrates the scale of the disruption.
Only nine commodity vessels crossed the Strait of Hormuz on Thursday, compared with five on Wednesday and an August daily average of 12. The number remains dramatically below the more than 130 vessels that crossed the waterway each day before the war.
The sharp decline has turned the strait into one of the world’s biggest energy-security concerns.
The waterway carried about one-fifth of global oil and liquefied natural gas shipments before the conflict, making prolonged disruption a major threat to energy markets.
US-Israel-Iran War Live News: Oil Prices Rise as US Threatens Longer Blockade
Oil markets have responded to the latest escalation.
Brent crude and US West Texas Intermediate futures were trading higher, with Brent around $87 a barrel and WTI near $81.
Oil prices are also heading toward weekly gains as traders assess the possibility of a prolonged disruption to Gulf supplies.
A longer blockade could increase shipping costs, tighten crude supplies and put additional pressure on fuel prices worldwide.
US-Israel-Iran War Live News: US Economic Pressure Has Yet to Bring Iran Back to Talks
Washington’s pressure campaign has already targeted Iran’s oil revenues, financial networks and individuals and organisations that the US says help Tehran obtain weapons.
However, the measures have not yet produced the diplomatic breakthrough Washington wants.
Iran continues to demand major concessions before agreeing to restore normal passage through Hormuz, while the US insists on maintaining pressure until Tehran changes its position.
The stalled negotiations have therefore created a difficult cycle in which each side is increasing pressure while keeping the possibility of future talks open.
US-Israel-Iran War Live News: India and Asia Search for Alternative Oil Supplies
The Hormuz crisis is also forcing Asian buyers to rethink their crude supply chains.
Asian refiners have turned to US crude to secure alternative supplies while the waterway remains disrupted. India has also increased its purchases of Russian crude, with Russian oil accounting for a record share of India’s imports in July, according to Reuters.
The changes highlight how quickly the conflict is reshaping global energy trade.
If the disruption continues, refiners could face higher costs and greater competition for crude from alternative sources.
US-Israel-Iran War Live News: Broader Regional War Adds to Energy Market Risks
The latest Hormuz attacks come as the wider regional conflict continues to spread.
Reports of attacks involving Iran-backed Houthi forces and Saudi energy infrastructure have raised concerns about additional threats to oil production and transportation routes.
A broader attack on Gulf energy infrastructure could amplify the impact of the Hormuz crisis and push crude prices even higher.
Global economists have already warned that a prolonged war could reduce economic growth and increase the risk of recession in some economies.
US-Israel-Iran War Live News: What Happens Next in the US-Iran War?
The immediate question is whether Washington’s stronger economic campaign will force Tehran back to negotiations.
The US has signalled that it can maintain the naval blockade indefinitely, while Treasury officials have promised additional economic measures. Iran, meanwhile, continues to hold its position on reopening the Strait of Hormuz.
For now, the conflict is becoming an economic battle as much as a military one.
If Washington increases sanctions and maintains the blockade while Iran continues restricting shipping, the pressure will extend beyond the two countries — reaching oil markets, Asian refiners, shipping companies and consumers around the world.