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War Flares Again: US Restores Iran Blockade, Oil Routes Face Fresh Chaos

War Flares Again: US Restores Iran Blockade, Oil Routes Face Fresh Chaos

Bavana Guntha
July 16, 2026

The United States reimposed its naval blockade on Iranian ports early Wednesday, deepening the Middle East crisis after the fragile 60-day interim agreement aimed at ending the conflict collapsed. The move came amid a fifth consecutive day of American military strikes and Iranian retaliation, raising fears of a wider regional conflict.

The US Central Command (CENTCOM) said it carried out dozens of strikes over a seven-hour overnight operation, targeting missile launch sites, drone facilities, naval assets and coastal defence systems. The military also launched an unusual daytime follow-up strike, signalling a higher operational tempo as fighting intensified.

One of the deadliest attacks struck a barracks of Iran's 388th Mechanised Infantry Brigade in Sistan and Baluchestan. Iranian officials said at least seven soldiers were killed and more than 260 people were injured , making it the highest casualty toll reported since the latest escalation began.

Iran responded by firing missiles and drones at Kuwait, Bahrain and Jordan, all of which host American military bases. Jordan said its air defence systems intercepted three incoming missiles before they reached their targets.

The Islamic Revolutionary Guard Corps (IRGC) warned it could halt all energy exports from the Gulf, declaring that oil and gas shipments would be "for everyone or for no one." A senior Houthi official also warned that both the Strait of Hormuz and the Bab al-Mandeb Strait could be closed simultaneously if the conflict continues to worsen.

US President Donald Trump withdrew his proposal to impose a 20 per cent transit fee on ships using the Strait of Hormuz after, he said, Gulf leaders urged him to abandon the idea while promising billions of dollars in investments in the United States. Trump also warned Iran that it could face strikes on bridges and power infrastructure within days unless negotiations resume.

CENTCOM said it had redirected two commercial vessels attempting to pass through the blockade. Shipping through the Strait of Hormuz has slowed sharply, with only 17 vessels passing on Tuesday compared to a pre-war average of around 100 ships a day , according to shipping analytics firm Kpler.

The conflict has also claimed an Indian life. Heramb Karmarkar , a 30-year-old marine engineer , was killed after his vessel was struck off the coast of Oman earlier this week. Iran has said several ships using alternative routes outside its control have also been targeted.

The escalating conflict has rattled global energy markets. Brent crude traded above $85 a barrel on Wednesday, more than 15 per cent higher than pre-war levels, though still below the near-$120 peak seen earlier in the conflict.

Despite the worsening situation, Pakistan-led regional mediators continue efforts to revive the ceasefire. However, with both Washington and Tehran showing little willingness to scale back military operations, prospects for an immediate diplomatic breakthrough remain uncertain.

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USIranConflictMiddleEastCrisisIranUSMilitaryStraitOfHormuzOilPricesGlobalShippingDonaldTrumpCENTCOMWorldNews