US seeks international help to reopen Strait of Hormuz as crude prices surge

WASHINGTON/DUBAI/ISLAMABAD – The US is pushing for other countries to form an international coalition to restore freedom of navigation in the Strait of Hormuz, according to a US State Department cable seen by Reuters, as oil prices surge on fears of lengthy disruptions to global fuel supplies.

Two months into the war that started with US-Israeli strikes on Iran, the vital sea channel remains closed, choking off 20 per cent of the world’s supplies of oil and petrol.

That has sent global energy prices surging and heightened concerns about the risks of an economic downturn.

Efforts to resolve the conflict have hit an impasse, with a ceasefire in place since April 8 but Iran still blocking the strait in response to a US naval blockade of Iran’s oil exports, the country’s economic lifeline.

US President Donald Trump is slated to receive a briefing on April 30 on plans for a series of fresh military strikes on Iran in hopes of making Iran more flexible on nuclear issues in negotiations, according to an Axios report late on April 29.

That spurred big gains in oil prices, with the benchmark Brent crude contract hitting more than US$126 a barrel at one point, its highest level since March 2022 after Russia’s invasion of Ukraine.

Brent prices have doubled since the US-Israeli attack on Iran began on Feb 28, fuelling inflation and sending pump prices to politically painful levels worldwide.

Iran has pledged to continue disrupting traffic through the strait as long as it is threatened, which may mean more Middle East oil supply disruptions from a conflict that has killed thousands.

Tehran warned on April 29 of “unprecedented military action” against continued US blockading of Iran-linked vessels, which, together with the possibility of further US military strikes, signalled there could be more Middle East oil supply disruptions from a conflict that has killed thousands.

Another plan to be shared with Mr Trump involves taking over part of the Strait of Hormuz to reopen it to commercial shipping, the Axios report added, saying such an operation may involve ground forces.

In a sign the US was also envisaging a scenario where hostilities cease, the US State Department cable invited partner countries to join a new coalition called Maritime Freedom Construct (MFC) to enable ​ships to navigate the strait.

“The MFC constitutes a critical first step in the establishment of a post-conflict maritime security architecture for the Middle East,” said the cable, which was due to be delivered orally to partner nations by May 1.

France, Britain and other countries have held talks on contributing to such a coalition but said they were only willing to help open the Strait when the conflict ends.

Mediator Pakistan was trying to avoid escalation while the two sides exchanged messages on a potential deal, a Pakistani source said on April 29.

Mr Trump has said Iran cannot have a nuclear weapon, while Tehran says its nuclear ambitions are peaceful.

Iran’s latest offer for resolving the war, suspended since April 8 under a ceasefire deal, would set aside discussion of its nuclear programme until the conflict is formally ended and shipping issues resolved.

That did not meet Mr Trump’s demand to tackle the nuclear issue at the outset.

The Pakistani source said the US had shared “observations” on the Iranian proposal and it was now up to Iran to respond.

“(The) Iranians asked for time till the end of the week,” the source told Reuters.

Iran wants US acknowledgment of its right to enrich uranium for what it says are peaceful, civilian purposes. It has a stockpile of about 440kg of uranium enriched to 60 per cent, which could be used for several nuclear weapons if further enriched.

Conflict cost US military $32 billion so far

The war has cost the US military US$25 billion (S$32 billion) so far, a senior Pentagon official said, providing the first official estimate of the price tag for the conflict.

In a sign of the toll the war is taking on Iran’s economy, its currency fell to a record low on April 29, the Iranian Students’ News Agency said.

Inflation stood at 65.8 per cent for the month to April 20, the central bank said.

Iran has executed at least 21 people since the start of the war with the US and Israel two months ago, and arrested more than 4,000 on charges related to national security, UN human rights chief Volker Turk said on April 29.

Iran’s Speaker of Parliament and top negotiator, Mr Mohammad Bagher Ghalibaf, said Mr Trump was trying to divide Iranians and force Iran to surrender through the blockade.

“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 messaging app Telegram.

Mr Trump on April 28 discussed with US oil companies how to mitigate the impact of a possible extension of the US blockade on Iranian ports for months if needed, the White House said on April 29.

US intelligence agencies, tasked by senior administration officials, are also studying how Iran would respond if Mr Trump were to declare a unilateral victory, two US officials and a person familiar with the matter said this week. REUTERS