US moves to form global naval coalition as Strait of Hormuz crisis sees record high oil prices

THE United States is actively urging allies to join an international coalition aimed at restoring freedom of navigation in the Strait of Hormuz, according to a State Department cable seen by Reuters, as the world’s most critical oil transit route remains severely disrupted amid escalating conflict involving Iran and Israel.

The proposed initiative comes as global energy markets continue to react sharply to prolonged instability in the region, with oil prices surging to multi-year highs on fears of sustained supply shocks.

The Strait of Hormuz, which handles roughly 20% of global oil and gas shipments, has been effectively paralysed for two months following the outbreak of conflict triggered by U.S. and Israeli strikes on Iran.

Reuters reported on Thursday that the disruption has tightened global supply chains and intensified inflationary pressures worldwide.

Efforts to de-escalate the conflict have stalled, with diplomatic channels described as deadlocked.

The United States is meanwhile pursuing measures aimed at increasing pressure on Tehran, including attempts to restrict Iran’s oil exports, which are widely regarded as a key source of national revenue.

According to a separate report by Axios, U.S. President Donald Trump is expected to be briefed on potential further military options against Iran, a development that contributed to a sharp rise in oil prices on Wednesday.

Brent crude briefly exceeded US$125 per barrel, with markets also affected by technical factors linked to contract expiry.

Since the beginning of the year, Brent crude has more than doubled, reaching its highest levels since March 2022, exacerbating inflationary pressures and pushing fuel prices to politically sensitive levels in multiple economies.

Iran has warned it will continue to disrupt maritime traffic through the Strait of Hormuz if it remains under threat, raising concerns of prolonged instability in one of the world’s most vital energy corridors.

Tehran has also issued warnings of what it described as “unprecedented military action” in response to continued pressure on Iran-linked shipping.

The United States has maintained that Iran must not be allowed to acquire nuclear weapons, while Tehran insists its nuclear programme is for peaceful purposes.

“They don't know how to sign a non-nuclear deal. They'd better get smart soon!” President Donald Trump said in a social media post, without detailing the terms of any potential agreement.

Diplomatic efforts continue behind the scenes, with Pakistan acting as an intermediary in efforts to prevent further escalation. A Pakistani source said both sides are exchanging messages on a potential settlement, though progress remains limited.

Trump also held discussions with oil industry executives, during which strategies were reviewed to stabilise global energy markets and mitigate the impact of supply disruptions on consumers in the United States, according to a White House official.

The conflict has also imposed significant costs on the US military, estimated at around $25 billion so far, according to a senior Pentagon official, marking the first official assessment of the financial burden.

In parallel, the State Department cable indicated that Washington is proposing a new multinational framework, referred to as the “Maritime Freedom Construct”, which would coordinate naval activity, share intelligence, and support sanctions enforcement to secure passage through the Strait of Hormuz.

However, France, Britain and several other countries have reportedly expressed willingness to assist only after hostilities cease, rather than participating in active enforcement during ongoing conflict.

Iran’s demands in negotiations include recognition of its right to enrich uranium for civilian purposes. It is reported to possess approximately 440kg of uranium enriched to 60%, a level that could be further refined for weapons use if increased.

Iranian parliamentary speaker and chief negotiator Mohammad Baqer Qalibaf accused Washington of attempting to force surrender through economic and maritime pressure, urging national unity in response to what he described as foreign pressure.

“The solution for confronting the enemy's new conspiracy is only one thing: maintaining unity, which has been the bane of all the enemy's conspiracies,” he said in an audio message on Telegram.

Human rights monitors have also reported escalating internal repression in Iran, including at least 21 executions and more than 4,000 arrests on national security charges since the conflict began, according to the United Nations human rights office.

The Iranian economy is meanwhile under severe strain, with its currency falling to record lows and inflation reported at 65.8% for the latest monthly period.

Diplomatic sources say Iran has proposed postponing nuclear negotiations until after a formal resolution of the conflict and maritime disputes, a position that diverges from Washington’s demand for immediate nuclear talks.

With tensions showing little sign of easing, analysts warn that continued disruption in the Strait of Hormuz could have prolonged consequences for global energy security and economic stability, while domestic political pressure mounts in the United States over rising fuel prices and the widening cost of the conflict. - April 30, 2026