‘War left regime desperate for cash’: US sanctions authority overseeing Strait of Hormuz as Middle East conflict enters 90th day

The US administration has announced imposed fresh sanctions on Iran, targeting the country’s newly formed agency overseeing shipping through the Strait of Hormuz, as Washington continued its economic pressure campaign amid the ongoing war. The move came hours on Wednesday (local time) after US forces carried out strikes on an Iranian military facility following the downing of Iranian attack drones.The latest sanctions target Iran’s Persian Gulf Strait Authority and any individual or entity working with it. The agency, created earlier this month, has been regulating transit through the Strait of Hormuz and charging tolls that can go up to $2 million per vessel.The Strait of Hormuz is one of the world’s most important shipping routes, with around a fifth of global oil and natural gas supplies passing through it.“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” US treasury secretary Scott Bessent said in a statement.Iran’s Revolutionary Guard defended the move, saying ships must use the corridor designated by the force while passing through the waterway. It also warned that vessels moving outside the approved route could face attacks and other risks.These sanctions come as the latest attempt by Trump administration to increase pressure on Iran while talks continue over a possible agreement to end the war and reopen the Strait of Hormuz.The conflict has pushed up oil, gas and related energy prices globally since the war began after the United States and Israel launched military action on February 28. Experts have said it could take weeks or even months for shipping movement and prices to return to normal once the waterway reopens.At the same time, the United States has maintained a blockade on Iranian ports for more than a month. Trump said the blockade “will remain in full force and effect until an agreement is reached, certified, and signed.”The latest sanctions come as Washington and Tehran remain engaged in negotiations aimed at ending the conflict.Speaking at a Cabinet meeting on Wednesday, Trump said Iran was “negotiating on fumes” and claimed both sides were moving closer to a deal.“They want very much to make a deal,” Trump said. “So far, they haven’t gotten there. We’re not satisfied with it, but we will be — either that or we’ll have to just finish the job.”Earlier this week, the US military said it carried out what it described as “self-defense” strikes on missile launch sites and boats laying mines. Wednesday’s strikes are expected to make negotiations more difficult.Trump has also warned that fighting could resume if no agreement is reached, although he has stepped back from similar threats several times in recent months.Since the conflict broke out three months back on February 28, the strategically crucial Strait of Hormuz has continued to see disruptions, straining oil supplies across the world. Iran’s tight noose on the pipeline has sent ripples across economies as the passage was responsible for carrying 20% of the world’s energy supplies.