Trump says US has 'draconian sanctions' ready for Iran; claims Hormuz naval blockade '100% successful'

Washington, DC: US President Donald Trump on Wednesday (local time) said Washington has "very draconian sanctions" available against Iran and indicated that further measures could be announced, while asserting that the Strait of Hormuz remained open and the naval blockade had been "extremely effective".

While addressing technology leaders, Trump, when asked about possible sanctions on Iran, said, "We have things that we could sanction. We have very draconian sanctions, and we'll see what happens."

He said the US would decide its next course of action based on developments, adding that the situation could either lead to a major drop in oil prices or a continuation of the current measures.

"It'll either be extremely good, and oil prices are going to drop like a rock or we'll continue to do exactly what we're doing," Trump said.

On the Strait of Hormuz, Trump claimed that a US naval blockade had been successful and that oil shipments were continuing despite tensions.

"Right now the Strait is open. A lot of boats are coming through. People aren't reporting that," he said.

"The naval blockade has been extremely effective. Zero--I mean, literally while it's up, and that's been for quite a while, you know, except for a couple of little pauses where we opened it purposely at... with a deal. But the deal didn't terminate... the deal didn't turn out to be what they said. You know, when they tell us one thing, and they do another. But the blockade has been 100% successful," Trump added.

Trump said oil prices had remained stable despite concerns over disruptions in the key energy route.

"They were talking about $350 a barrel, and it's today 84, 85. And we are getting a lot of oil out," he said.

He also pointed to alternative sources of oil from US states including Texas, Alaska and Louisiana, saying increased production and new pipelines had reduced dependence on the Strait of Hormuz.

"I think the Hormuz Strait is not going to be quite as important as it was in the past," Trump said.

Earlier, he said the situation with Iran was "so good" and suggested that negotiations with Tehran could resume "maybe at some point".

"Maybe at some point, but right now I think the situation is so good," Trump had said.

He also reiterated that Iran must not be allowed to possess nuclear weapons.

"Iran cannot have a nuclear weapon. You know why? Because they'd use it. And we're not going to let them use it. So Iran cannot have a nuclear weapon, and they won't," Trump said.

The comments came amid continuing tensions between Washington and Tehran over the Strait of Hormuz, a crucial global energy transit route.

Earlier, reports said the US negotiating team had been asked to pause talks with Iran until Tehran was "ready to make a deal".

Trump had also said there were no talks or discussions currently scheduled with Iran, while maintaining that the Strait of Hormuz was open and operational.

Meanwhile, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran would not reopen the Strait of Hormuz until the United States fulfilled commitments under a 14-point Memorandum of Understanding, including lifting the blockade, releasing frozen Iranian assets and easing oil sanctions.

The Strait of Hormuz remains at the centre of rising tensions between Washington and Tehran, with both sides issuing conflicting statements over its status.