Hormuz Strikes Drive Oil Prices Higher Amid Shipping Chaos

President Donald Trump convened his Cabinet at the White House on Wednesday after canceling plans for a retreat at Camp David, citing poor weather. The session addressed the fragile state of negotiations with Iran and the administration's approach to reopening the Strait of Hormuz.

Recent exchanges have tested the ceasefire reached after American and Israeli strikes on Iranian nuclear facilities in February. US Central Command reported that American forces intercepted four Iranian one-way attack drones over the strait and destroyed a ground control site near Bandar Abbas before a fifth drone could launch. Iran responded by firing a ballistic missile toward Kuwait, which Kuwaiti defenses intercepted. Iranian officials described their action as retaliation for US strikes near Bandar Abbas airport.

The Treasury Department imposed sanctions on Iran's newly formed Persian Gulf Strait Authority, which Tehran established to manage traffic through the waterway. Officials said the entity represents an attempt by the Islamic Revolutionary Guard Corps to extract revenue from international shipping. Roughly one-fifth of global oil trade passes through the strait, and Iranian restrictions since the war began have disrupted that flow.

During the televised portion of the Cabinet meeting, Trump rejected reported elements of a draft agreement floated in Iranian media. He stated there would be no sanctions relief or unfrozen assets without verified compliance, and he dismissed any Iranian role in controlling passage alongside Oman. Trump said the strait constitutes international waters and warned that attempts to restrict access would face decisive response. He also indicated he was not swayed by the timing of midterm elections.

Public polling has shown declining approval for the president amid the conflict and economic pressures. The White House described recent domestic measures as successes in small business activity. Iran has continued to insist on retaining some enrichment capacity and oversight of the strait, positions US officials view as incompatible with lasting stability.

The pattern of limited strikes and counterstrikes illustrates the difficulty of securing reliable access to a critical trade route while confronting a regime that has repeatedly tested boundaries. Negotiations remain stalled on core demands, with both sides signaling they will not accept terms that leave their core interests exposed.