Hormuz Strait closure forcing Trump, importers to seek solution

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The effective closure of the Strait of Hormuz – entering its fourth week as conflict in the region deepens – is piling pressure on the US administration and on major importers of oil, gas and fuels from the Persian Gulf, prompting them to scramble for solutions.

President Donald Trump on March 21 issued a 48h ultimatum for traffic to resume and threatened to strike Iran’s power plants. The comments mark a dramatic escalation and reflect growing frustration in the White House with the struggle to restore traffic through the narrow waterway and to damp rising oil prices.

Iran’s armed forces warned the country will target “all energy, information technology, and desalination infrastructure belonging to the US and the Israeli regime in the region,” in a statement issued after Mr Trump’s latest threat.

A thin corridor that connects the Persian Gulf with the wider world, Hormuz has been all but blocked since US and Israeli strikes began at the end of February. In normal times, the strait handles about a quarter of the world’s seaborne oil trade.

In the last few weeks, however, only a trickle of vessels – Chinese, Iranian-linked or protected by Iran – have made their way through.

The channel has been a focal point since the start of the war, but Iran’s geographic and strategic advantages mean the US has been unable to restore traffic – even after introducing an insurance mechanism, mulling naval escorts and attempting to recruit wary partner nations to reopen the waterway.

Brent crude, the global benchmark, has now climbed almost 55 per cent since the war began.

For Asia’s oil-importing nations caught in the crossfire, the closure is limiting supplies of oil, gas and fuels and pushing up prices – forcing them to consider alternatives, in some cases by finding other suppliers or by attempting negotiations with Tehran.

India, in the grip of an acute liquefied petroleum gas shortage, has secured at least two cargoes of the cooking fuel and is negotiating transit for more.

In a weekend call with Iran’s President Ahmad Masoud Pezeshkian, Indian Prime Minister Narendra Modi stressed the importance of keeping shipping lanes “open and secure,” according to a post on X.

A Pakistan-bound crude tanker made its way through the corridor a week ago, while Turkey was also given the green light, according to a state-owned news outlet.

Other Asian buyers with close ties to the US are attempting to navigate the delicate balance between the urgent need for oil and lower prices – and the need to avoid antagonising a volatile Trump administration, especially when most have resisted calls from Washington for warships to help secure the strait.

Iran’s Foreign Minister Abbas Araghchi indicated in an interview on March 20 that the country was ready to allow Japan-related ships to transit the waterway. His counterpart in Japan quickly clarified that the country was not considering unilateral negotiations.

Instead, Japan would focus on ensuring “conditions where everyone can pass,” Foreign Minister Toshimitsu Motegi said, stressing the importance of maintaining broad freedom of navigation. About 45 Japan-linked vessels remain affected in the strait, he said on March 22.

South Korea, another major importer of crude and exporter of fuels into Asia and beyond, has been similarly circumspect, saying it is closely monitoring developments and communicates with relevant countries, including Iran.

Though some political observers suggested the push to cool energy prices would likely make Washington tolerant, one government official in Seoul said all sides were treading with caution.

“South Korea faces a tough situation. If it makes a deal with Iran to ensure safe passage for its ships without responding to the US call to send troops to secure the Strait of Hormuz, it will likely cause serious problems for the US-ROK alliance,” said Dr Ellen Kim, director of academic programmes at Korea Economic Institute of America.

“Therefore, even if South Korea is in talks with Iran to resolve its dire energy needs, the South Korean government will remain cautious and is likely to coordinate its approach with other countries, such as Japan, that face the same problem.” BLOOMBERG