The U.S. has begun enforcing a naval blockade on Iran, targeting all vessels entering and exiting its ports across the Gulf and the Strait of Hormuz.
The move is expected to inflict about $435M in total daily losses across Iran’s exports, roughly $13B per month, even as its oil revenues rose 37% during the war to about $139M per day.
The IRGC had been operating a paid “protection corridor,” charging up to $2M per vessel in crypto, but the blockade could halt exports, disrupt imports, trigger food shortages, and accelerate the collapse of the rial.
Plus: vessels entering the Strait of Hormuz without authorization are subject to interception, diversion, and capture by the U.S. military. […] “The blockade will not impede neutral transit passage through the Strait of Hormuz to or from non-Iranian destinations.”
More: The thing about that Persian Gulf stranglehold is that, like the Sword of Damcles, it’s only effective until it’s played.”
I’m on the road this week and mostly out of the news cycle, so drop related links in the comments.


