Trump & Iran: Strait of Hormuz, Oil Prices & Global Trade | Fareed Zakaria

Donald Trump, while out of office, is reportedly considering a potentially destabilizing military action: the seizure of Kharg Island, Iran’s primary oil export terminal, according to sources familiar with his discussions. The move, described as risky by Axios, is intended to pressure Iran into reopening the Strait of Hormuz, a vital chokepoint for global oil supplies.

The threat follows increasingly bellicose rhetoric from Trump, who stated he would “obliterate” Iranian power plants should the Strait of Hormuz remain closed, as reported by The Hill. This escalation comes as Iran has warned it will completely close the Strait if the U.S. Acts on threats to its infrastructure, according to the Iranian Revolutionary Guard (IRG), as cited by The Guardian.

The potential disruption to oil flows through the Strait of Hormuz has raised concerns about the economic implications, with CNBC reporting that the economy has a two-week deadline to witness a resolution. The Strait is a critical artery for global energy markets, and its closure would likely cause a significant spike in oil prices and disrupt international trade.

Edward Fishman, a former State Department official and author of “Chokepoints: American Power in the Age of Economic Warfare,” has been consulted regarding the situation. While specific details of his counsel haven’t been publicly released, his expertise centers on the strategic importance of such chokepoints and the use of economic pressure as a tool of foreign policy.

The Iranian government has not yet responded directly to the specific proposal of seizing Kharg Island, but has consistently maintained its position that the security of the Strait of Hormuz is linked to its own security interests. The IRG’s statement underscores the potential for immediate retaliation should the U.S. Accept action against Iranian infrastructure.

As of Sunday, March 22, 2026, the situation remains unresolved, with no indication of a diplomatic breakthrough. The Trump team continues to weigh its options, and Iran remains steadfast in its refusal to yield to U.S. Demands regarding the Strait of Hormuz.