U.S. Navy blockade slashes Iran oil exports as Trump administration shifts to economic warfare

The U.S. is shifting to a campaign of economic warfare after roughly a dozen airstrike waves in July failed to deter Tehran’s position on the Strait of Hormuz. With Hormuz-centric risk elevated, the market is likely to price in higher tail risk for oil and shipping costs. Overall news flow is a clear risk-off catalyst rather than a resolution, supporting downside bias across energy- and geopolitics-exposed assets.