Iran threatens escalation as Hormuz shipping slows and oil prices surge

Donald Trump once argued that the quickest way for an American president to lose credibility was to draw a red line and then fail to enforce it.
Nearly six months into the Iran war, the US president risks confronting that test himself.
Trump has repeatedly threatened Iran with military action, imposed deadlines and warned of devastating consequences if Tehran failed to meet his demands. Many of those threats have passed without the promised response — even as Iran continues to resist US pressure and the Strait of Hormuz remains heavily restricted.
Now Trump has turned some of his strongest language on Oman, threatening to bomb the Gulf country if it interferes with US efforts in Hormuz.
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Iran's top negotiator Mohammad Bagher Ghalibaf said on Tuesday that the strategic Strait of Hormuz will not be opened until the United States meets Tehran's demands, including lifting a naval blockade.
"I want to state clearly that the Strait of Hormuz will not be opened until the American commitments stipulated in the memorandum of understanding... are implemented," Ghalibaf said in a speech broadcast on state television. He listed the removal of the blockade, the lifting of oil sanctions and unfreezing of Iran's assets abroad among the demands.
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A ship was hit by a projectile early Tuesday as it was sailing out of the Strait of Hormuz, according to the British military's UK Maritime Trade Operations centre.
There was no immediate claim of responsibility but the attack highlights the ongoing danger of attempting to transit the waterway as Iran continues to throttle shipping traffic, even as it finalizes negotiations with Oman on a plan to manage the critical passage.
President Donald Trump threatened Monday to bomb Oman if it "gets in the way" of a US deal with Iran on the Strait of Hormuz and called for Tehran to surrender in a war that has become a growing political burden.
Control of the waterway, which Iran has effectively closed since the conflict began on February 28, remains at the heart of the deadlock between Tehran and Washington.
President Donald Trump's approval rating has fallen to 33%, its lowest point of his presidency, as growing numbers of Americans fear his war with Iran could become a prolonged conflict and rising energy costs deepen pressure on the White House.
The Reuters/Ipsos poll, completed Monday (August 17), found that 64% of Americans disapprove of Trump's performance.
His approval rating fell from 35% in an earlier August survey, matching the lowest level recorded during his first term, in December 2017.
The poll comes as Trump's administration faces mounting questions over a war that the president initially suggested could be resolved within weeks.
Iran is weighing three measures to curb petrol use as war, import problems and a widening supply-demand gap strain fuel supplies.
The options include capping daily deliveries to petrol stations at 121 million litres; tightening vehicle quotas while selling excess fuel at market rates; or replacing vehicle-based quotas with monthly allocations of about 30 litres per citizen that people could use or trade.
No decision has been made, and subsidised fuel prices will not immediately change, Vice President Esmail Saghab-Esfahani said on state television. He added that the public would be informed before any policy took effect, Iran Wire reported.
Under the third plan, about 30 million litres a day would be reserved for public transport, taxis and ride-hailing services to limit fare increases.
It would also include a three-year programme to electrify 400,000 motorcycles, convert 130,000 pick-up trucks to natural gas and add 7,300 buses, although officials have not disclosed the programme’s financing or timetable, as per Iran International.
Iran’s new ‘infiltration’ bill has sparked backlash as it could make ordinary contact a crime. The bill before Iran’s parliament would impose new restrictions on contacts with foreign media, universities and organisations has drawn widespread objections over its potential impact on routine academic, cultural and civil-society activity, London-based Iran International reported.
Four airstrikes hit the Abu al-Zuhour military airport in the eastern countryside of Idlib on Tuesday, marking the first reported attack on the strategic facility since the fall of Bashar al-Assad's government in December 2024.
The aircraft involved have not been officially identified. The identity of the attackers remained unconfirmed. There were no immediate reports of casualties or the extent of damage at the base. The attack comes amid heightened regional tensions and continued Israeli military activity inside Syria. Israel has maintained positions in territory seized after Assad's overthrow and has carried out repeated strikes and incursions, citing security concerns.
During the initial months of the Iranian-US conflict, Washington’s primary objective was to weaken Tehran’s military capabilities and strengthen deterrence.
On the other hand, Iran sought to raise the costs of the conflict by targeting maritime navigation and energy infrastructure across the region, while demonstrating its ability to prolong the conflict.
Today, however, as the conflict enters its fifth month, the two opponents are faced with a different dilemma.
The United States has partially achieved its key military objectives, such as degrading Iran’s missile and drone capabilities, weakening Iran’s air defence network, reducing Iran’s naval threat and limiting Tehran’s ability to reconstitute its forces.
Day 166: Israel strikes Lebanon as Iran-US tensions rise; Oman holds Hormuz talks
Day 165: US-Iran tensions rise over Trump’s Hormuz claim
Day 164: Iran demands faster US exit from Middle East
Day 163: 2 ADNOC vessels attacked in Hormuz; no injuries
Day 162: Trump says US has ‘total control’ of Strait of Hormuz
Day 161: Tehran: Hormuz stays shut as US-Iran diplomacy push continues
Day 160: Tehran reshuffles military
Day 159: Netanyahu rejects Gaza plan