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Economy

Trump Orders Strait of Hormuz "Cleared Out" — Oil Markets Brace for Impact

Trump announces the US is "clearing out" the Strait of Hormuz — the world's most critical oil chokepoint — with no details on what that means.

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Trump's Hormuz gambit could reshape global oil flows — or derail the entire peace process.
FLASHFEED DESK · · Updated: 03 Jun 2026, 14:27:46 · 3 min read
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Trump declared the United States is "clearing out" the Strait of Hormuz, the narrow waterway through which roughly 20 percent of the world's oil supply flows. The announcement came as empty tankers reportedly began heading toward the US to load crude, signaling Washington's confidence that the passage will reopen. But the reality on the water tells a different story — the strait remains effectively closed, with Iran still controlling which vessels pass and how many get through.

The blockade has already been described as the largest disruption to global energy supply since the 1970s oil crisis. Iran shut down commercial traffic through Hormuz after the US and Israel launched Operation Epic Fury on February 28, killing Supreme Leader Ali Khamenei and triggering a war that sent oil prices into a spiral. The two-week ceasefire agreed on April 7 was supposed to include the immediate reopening of the strait, but Tehran has dragged its feet, limiting crossings and demanding concessions on sanctions relief before restoring full access.

For Trump, the Hormuz standoff is both a negotiating lever and a political liability. Every day the strait stays closed, American consumers feel the pain at the pump — and his promise of cheap energy looks increasingly hollow. The military has assets in place to force the issue, but doing so risks collapsing the ceasefire entirely. The coming days in Islamabad will determine whether diplomacy can accomplish what warships have not: reopening the world's most critical oil chokepoint without reigniting the war.

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