Blockade Continues, Trump Says Iran's Economy Will Collapse

US President Donald Trump has stated that he will continue the naval blockade against Iranian ports, amid concerns that the Strait of Hormuz will not reopen in the near future. “Their economy is collapsing, this blockade is extraordinary. Their economy is in chaos. We’ll see how long they can hold out,” Trump told reporters at the White House, quoted from Bloomberg on Friday (1/5/2026). Global oil prices surged on Thursday (30/4/2026) before stabilising, amid the absence of any signs of an agreement between Washington and Tehran. The hardline stances from both sides, including comments from Iran’s new leader, have added to market uncertainty. Market players are beginning to factor in the possibility of prolonged conflict and the extended closure of the Strait of Hormuz, a vital route for global oil and gas distribution that has been practically shut since the US and Israel initiated war on 28 February 2026. Domestically in the US, fuel prices have also experienced a sharp spike. The national average has reached a new high, while retail petrol prices in California have exceeded 6 US dollars per gallon. This situation is a concern for the Republican Party ahead of the midterm elections. Previously, Iran’s new Supreme Leader, Mojtaba Khamenei, expressed doubts about the possibility of reaching an agreement. In a rare statement, he affirmed that Iran would not surrender its nuclear or missile technology, and signalled that Iran would continue to control the Strait of Hormuz. Iranian President Masoud Pezeshkian also described the US naval blockade as an “extension of military operations” that is unacceptable. On the other hand, US military commanders are scheduled to brief Trump on various action options. According to Axios reports, the US Central Command has prepared plans for short strikes to break the negotiation deadlock. “The question is no longer whether he will escalate pressure, but when and how,” they wrote. They estimate the most likely window for action within the next two weeks, with advanced strike options as the main scenario. Iran has stated it will not reopen the Strait of Hormuz to commercial ships until the US lifts the blockade. However, it is unclear how long Iran can hold out before its oil storage capacity is full and forces production cuts. Pressure on Iran’s economy is also becoming evident, with the value of its currency weakening to a new low in recent days.