Oil shipments through the Strait of Hormuz, a critical global energy chokepoint, have ground to a near halt, with flows plummeting from 19.5 million barrels per day to just 0.5 million, according to vessel tracking data highlighted by Goldman Sachs.
This dramatic collapse comes amid heightened tensions between the U.S. and Iran, as President Donald Trump declared that Tehran is open to negotiating a ceasefire but rejected the proposed terms as inadequate. In a phone interview with NBC News, Trump insisted that any deal would likely demand Iran fully abandon its nuclear ambitions, though he withheld specifics on the conditions under discussion. He also downplayed domestic concerns over spiking gas prices, asserting that U.S. efforts are underway with allies to secure the vital shipping lane.
Trump further claimed that recent American strikes have severely crippled Iran’s military capabilities, destroying much of its missile and drone arsenal. He noted that Kharg Island, a key Iranian oil export hub, was “totally demolished” in the attacks, though energy infrastructure was deliberately spared.
Separately, the President cast doubt on the status of Iran’s new supreme leader, Mojtaba Khamenei, calling reports of his death a rumor and questioning whether he is even alive.
Beyond the Middle East, Trump took aim at Ukrainian President Volodymyr Zelenskyy, describing him as more difficult to negotiate with than Russian President Vladimir Putin. The comments come as the U.S. pushes to broker an end to the ongoing war in Ukraine, signaling broader geopolitical friction on multiple fronts.
The near-total shutdown of oil flows through the Strait of Hormuz, which normally handles about a fifth of global oil supply, has already fueled volatility in energy markets. With U.S. benchmark crude prices hovering near multi-year highs, the latest figure of 0.5 million barrels per day underscores the scale of disruption facing importers reliant on the passage.
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