US threatens shipping firms with sanctions if they pay Iran tolls

The United States Treasury Department has warned international shipping firms that paying

The Panama Canal has become a focal point of escalating US-China tensions, with both nations accusing each other of politicizing global shipping. The US and its regional allies claim China has detained Panama-linked ships, calling it a deliberate attempt to manipulate maritime trade. China has vehemently denied these accusations, labeling them hypocritical and accusing the US of undermining sovereignty. Analysts warn that any disruption to the canal could significantly impact global trade, causing supply bottlenecks and market volatility. This dispute occurs amid heightened tensions over the Strait of Hormuz, suggesting a broader trend of major powers contesting control of vital shipping lanes and potentially challenging existing maritime laws.

At a Florida rally on Friday, Donald Trump compared US Navy

Pakistan has opened six overland transit routes to Iran to facilitate trade amid disruptions caused by US-Iran tensions and a blockade of the Strait of Hormuz. The initiative, formalized on April 25, 2026, allows goods from third countries to be transported through Pakistan to Iran by road, addressing the issue of thousands of stranded containers at Karachi port. These routes connect Pakistan's major ports, including Karachi and Gwadar, with Iranian border crossings in Balochistan. The move aims to promote regional trade and position Pakistan as a key trade corridor. The announcement occurred during Iranian Foreign Minister Abbas Araghchi's visit to Islamabad, where Pakistan is seeking to mediate an end to the conflict between the US and Iran. The transit order does not include Indian-origin goods.

Iran's UN envoy stated that guarantees against attacks and full respect for Iran's rights are necessary for stability in the Persian Gulf. This comes as the White House is reviewing a proposal from Iran, delivered via Pakistan, aimed at unblocking the Strait of Hormuz. The proposal outlines Iran's "red lines" on nuclear issues and the vital waterway, through which a significant portion of global oil and LNG supplies normally pass. The news follows a two-month internet blackout in Iran, which has now entered its 60th day. US President Donald Trump met with security advisors to discuss Iran's written messages.

Iran's national currency, the rial, has hit new lows against the US dollar, trading at over 1.81 million to the dollar on Wednesday. This sharp decline is attributed to a US naval blockade and existing sanctions, which are impacting Iran's trade, particularly with China and the UAE. The currency's value has plummeted significantly over the past year, exacerbated by unchecked inflation and economic mismanagement. In response, Iranian authorities are attempting to mitigate the impact by empowering border provinces for essential goods imports and allocating funds for food purchases. The US Central Command stated the blockade has effectively cut off Iran's economic trade.

As the ceasefire between the U.S. and Iran nears expiration this week, Iran is reaffirming its threat to block ships in the Strait of Hormuz if the U.S. does not lift its blockade of Iranian ports. Iranian parliamentary Speaker Mohammed Bagher Qalibaf stated that Iran will continue to target commercial vessels in the critical waterway, through which a significant portion of the world's oil passes. This announcement follows an incident on Saturday where Iranian forces fired on ships attempting to transit the strait, forcing them to turn back. The situation threatens to escalate the global energy crisis and potentially lead to renewed conflict. Pakistani mediators are attempting to facilitate further negotiations between the U.S. and Iran before the ceasefire ends on Wednesday.

The US military, through CENTCOM, announced it will blockade all Iranian ports starting Monday, April 13th, at 10 am Eastern Time, impacting all maritime traffic entering or exiting. This action follows unsuccessful peace talks in Pakistan and aims to exert pressure on Tehran. While the blockade targets vessels of all nations using Iranian ports, CENTCOM stated it will not impede vessels transiting the Strait of Hormuz to and from non-Iranian ports. Iran has warned that any approaching military vessels will be breaching the ceasefire. The announcement has already impacted oil prices, with US crude jumping 8 percent. The blockade comes after Iran effectively took control of the Strait of Hormuz following the start of war with the US and Israel on February 28th.

The U.S. Navy has implemented a sea blockade against Iran, halting economic trade in and out of the country by sea, beginning Monday, according to U.S. Central Command. The blockade, enforced in the Gulf of Oman beyond the Strait of Hormuz, applies to all vessels entering or leaving Iranian ports, regardless of nationality. U.S. forces are intercepting vessels after they leave Iranian facilities and clear the Strait of Hormuz, forcing them to turn around. Shipping data indicates that Iran-linked or sanctioned vessels have altered course, stopping or turning around after leaving the Gulf. The U.S. military is using various methods beyond standard tracking beacons to identify ships originating from Iranian ports.

Iran has reportedly closed the Strait of Hormuz again to commercial vessels, threatening to target any ship that approaches. This action follows reports of attacks on vessels in or near the strait, with the Islamic Revolution Guard Corps (IRGC) citing a continuing US blockade as the reason. The IRGC Navy has warned vessels to remain at anchorage and stated that approaching the Strait will be considered cooperation with the enemy. This closure comes a day after Iran announced the strait had been temporarily reopened. The US President has stated that the US will not be blackmailed by Iran's threats regarding the waterway, which has been effectively blocked for nearly two months. A US naval blockade of Iranian ports will continue until a peace deal is agreed.

In April 2026, analysts warned that a planned US naval blockade of Iran, announced by President Trump, would worsen the global energy crisis. While Central Command stated the blockade would only affect ships entering and exiting Iranian ports, experts believe it could still cripple international shipping. The blockade, intended to prevent Iran from profiting from "illegal extortion," could drive oil prices above $150 a barrel if it provokes retaliation, such as the Houthis shutting down the Bab al-Mandeb strait. This action marks a policy reversal, as the US had recently waived some Iranian oil export sanctions to ease the energy crunch. Since the start of the US-Israeli war in February, Iran has already restricted traffic through the Strait of Hormuz, causing thousands of vessels to become stranded.

A US naval blockade of the Strait of Hormuz is raising the specter of a major energy crisis in Asia. The blockade, initiated by the US to pressure Iran into peace talks and reopening the strait, has prompted Iranian threats against all ports in the Persian Gulf and Gulf of Oman. The Strait of Hormuz is a critical chokepoint for global energy supplies, particularly for Asia, through which nearly 90% of the region's crude oil transits. China, India, Japan, and South Korea are especially vulnerable, relying on the strait for a large majority of their oil imports. With peace talks stalled, the timeline for resuming oil flows remains uncertain, threatening significant economic disruption in Asia.

UK Chancellor Rachel Reeves criticized the US decision to engage in war with Iran without a clear exit strategy, stating it has led to the blockage of the Strait of Hormuz and threatens global economic stability. Speaking before an International Monetary Fund meeting in Washington, Reeves expressed frustration that the conflict, initiated under Donald Trump, is negatively impacting families in the UK and worldwide. She highlighted that the UK is projected to suffer the largest economic impact among G7 nations due to the war, with reduced GDP growth forecasts. Reeves affirmed Prime Minister Keir Starmer's decision to keep the UK out of the conflict, while acknowledging pressure to mitigate the war's impact on UK households through energy bill assistance and potential fuel duty adjustments. Starmer has established a committee to address the war's effects on Britain.

China has criticized the United States' potential blockade of Iranian ports, deeming it "irresponsible and dangerous." This statement follows US accusations of "economic terrorism" against Iran for disrupting traffic in the Strait of Hormuz. A Chinese foreign ministry spokesman urged all parties to adhere to ceasefire arrangements, prioritize dialogue, and restore normal traffic in the strait. The spokesman also refuted reports that China was preparing to deliver air defense systems to Iran, dismissing them as fabrications. He further stated that China would take countermeasures if the US imposed tariffs based on these accusations. The US had threatened tariffs on Chinese goods if military assistance was provided to Iran.

China is advocating for a ceasefire in the Iran war to ensure the Strait of Hormuz remains open for international trade and energy transport. This comes as US President Donald Trump announced a large naval operation targeting the oil transit chokepoint. Chinese Foreign Ministry spokesman Guo Jiakun stated that the Strait's stability and unimpeded passage are crucial for global interests. According to Guo, the conflict involving Iran is the primary cause of disruptions in the Strait. China urges all parties to remain calm and exercise restraint to resolve the issue.

Russian Foreign Minister Sergey Lavrov met with Chinese President Xi Jinping in Beijing on Wednesday to discuss geopolitical issues, including the conflict in the Middle East and the war in Ukraine. Xi Jinping called for stronger strategic coordination between China and Russia, emphasizing the importance of their relationship amidst international instability. He urged both countries to protect their interests and support Global South unity. Lavrov and Chinese Foreign Minister Wang Yi also discussed the Middle East conflict and the Ukraine war on Tuesday. Lavrov offered that Moscow could compensate for China's energy shortages due to the Strait of Hormuz shutdown.