Updated: Apr 24, 2026, 04:37 PM IST
Tensions around the Strait of Hormuz escalated Friday after U.S. President Donald Trump said he had ordered U.S. forces to “shoot and kill” Iranian small boats operating in the vital waterway. Iran dismissed the president’s comment that its leadership is in disarray, and the confrontation has effectively halted most exports through the strait — a chokepoint that normally carries about 20% of the world’s traded oil in peacetime.
The U.S. said orders target Iranian boats laying mines and other small-craft provocations, and Trump asserted that U.S. forces could quickly degrade Iranian weapons refurbishment. Despite those claims, navigation through Hormuz remained effectively blocked after Iran captured two large cargo ships, highlighting the limits of U.S. control and the growing risk to global energy markets.
Iranian response and leadership remarks
Iran’s Supreme Leader Mojtaba Khamenei rejected Trump’s suggestion of disarray among Iran’s leadership, calling such claims enemy propaganda meant to undermine unity and morale. Khamenei, who has kept a low public profile since succeeding his father, vowed that unity would strengthen and that Iran’s adversaries would be humiliated.
Regional and allied fallout
The dispute has rippled across alliances. Spanish Prime Minister Pedro Sánchez declined to escalate a spat with Washington at NATO after reports a Pentagon email considered penalties for allies that do not support U.S. operations in the Iran conflict. Spain has denied U.S. forces use of its bases and airspace, saying U.S.-Israeli actions violate international law; France and the U.K. have also withheld full backing. Reuters reported an anonymous U.S. official saying the Defense Department note considered options including suspending Spain from NATO.
Markets and economic implications
Currency and commodity markets felt the strain. The pound inched up to $1.348 but was headed for a weekly loss as investors focused on stalled U.S.-Iran diplomacy and the threat to oil supplies. U.K. retail sales for March beat expectations, with higher fuel purchases reflecting motorists’ fears of price hikes after the outbreak of the Iran war.
Other diplomatic and military developments
– Pakistan’s capital, Islamabad, remained closed to heavy traffic as security forces prepared for a possible, though unconfirmed, visit by U.S. and Iranian leaders to resume stalled talks; more than 10,000 security personnel were deployed.
– China denied President Trump’s claim that an Iranian-flagged cargo ship seized by U.S. forces was a “gift from China.” The U.S. said it seized the vessel for allegedly evading a blockade of Iranian ports; Iran called the seizure “armed piracy.”
– Israel’s Defence Minister Israel Katz said Israel stands ready to escalate operations against Iran but is awaiting U.S. approval, according to Israeli media.
– Despite a ceasefire extension in Lebanon, Israeli strikes continued against Hezbollah positions in southern Lebanon after some of the conflict’s deadliest days since fighting paused on April 16.
Other notable items
– Guyana said a tanker seized by the U.S. in Asia for allegedly carrying sanctioned Iranian crude had been “fraudulently” flying its flag.
– Iran’s central bank confirmed that toll revenue collected from newly imposed transit fees for vessels passing through the Strait of Hormuz has been deposited in cash, countering earlier reports that payments were being made in cryptocurrencies.
– When asked about the prospect of nuclear weapons use, Trump said he would not employ nuclear arms, asserting conventional strikes have “decimated” Iran and stressing that nuclear weapons should never be used.
– Separately, Trump posted on Truth Social warning that “the clock is ticking” for Iran and that any deal would have to favor the United States.
– Lebanon and Israel agreed to extend a ceasefire by three weeks following White House-facilitated talks, the U.S. president said.
Outlook
With maritime traffic through the Strait of Hormuz constrained and diplomatic channels strained, the immediate outlook is uncertain. Markets and governments are closely watching for further military actions, allied responses within NATO, and any resumption of high-level diplomacy that could defuse the standoff.
