Hormuz pause puts Iran deal in focus

US President Donald Trump has temporarily halted Washington’s ship-escort operation through the Strait of Hormuz, saying talks with Tehran have made “great progress” toward a wider settlement after weeks of disruption to one of the world’s most critical energy corridors.

The pause, announced on Tuesday, came only hours after Secretary of State Marco Rubio detailed a US effort that began on Monday to guide stranded tankers and commercial vessels out of the Gulf. The move has created uncertainty for shippers, oil traders and governments already struggling with a supply shock caused by the near-shutdown of the strait, a narrow passage linking Gulf producers to global markets.

Trump said the suspension was intended to give diplomacy more space, while making clear that US forces would remain positioned to respond if Iran resumed attacks on shipping or sought to block vessels. His administration has framed the escort mission as a defensive operation designed to protect commercial navigation rather than as an expansion of hostilities with Tehran.

The Strait of Hormuz normally carries roughly a fifth of global oil supplies and large volumes of liquefied natural gas. Its closure has left tankers waiting outside safe corridors, forced buyers to seek alternative cargoes, and pushed fuel costs higher across import-dependent economies. Asian refiners have been particularly exposed because much of the crude exported through the passage is destined for China, Japan, South Korea and other major buyers in the region.

Rubio’s remarks earlier on Tuesday underlined Washington’s position that Iran must choose between de-escalation and prolonged confrontation. He said any agreement would require credible assurances that Tehran would not pursue nuclear weapons and would stop threatening maritime traffic. Defence officials have said the operation was prepared after commercial ships were unable to move safely through the strait amid mines, drones, missiles and small-boat threats.

Iran has denied seeking nuclear arms and has accused the United States of using maritime security as a cover for pressure on its sovereignty. Tehran has also rejected some US claims about attacks on shipping, while maintaining that foreign military activity in Gulf waters has heightened the risk of miscalculation.

The diplomatic track has involved indirect messaging through regional and international intermediaries. Pakistan has played a role in relaying positions, while China has been urged to use its influence with Tehran because of its dependence on Gulf energy flows. European governments have called for shipping lanes to be reopened and for nuclear negotiations to resume under verifiable terms.

The escort pause places the immediate burden on diplomacy, but it also carries political risk for Trump. Fuel prices have become a domestic pressure point, while lawmakers have raised questions over war powers and the scope of US military action. The administration has argued that protecting shipping in international waters falls within its responsibility to defend commerce and deter attacks.

Shipping companies remain cautious. Insurance costs for vessels entering the Gulf have surged, crews have faced heightened danger, and some operators have preferred to keep ships at anchor rather than risk movement through contested waters. Even a formal reopening of the route may not quickly restore normal traffic, as maritime firms typically wait for several days of stability before resuming full operations.

Energy markets reacted sharply to the uncertainty surrounding the pause. Oil prices had already climbed as violence around the strait cast doubt on the durability of the ceasefire between Washington and Tehran. Any sustained disruption risks feeding inflation, straining government subsidy programmes and raising transport and manufacturing costs.

Gulf economies are also exposed despite their role as energy exporters. Ports, logistics hubs, aviation fuel networks and petrochemical supply chains depend on reliable maritime access. Disruption to fertiliser, aluminium and gas shipments has widened the impact beyond crude oil, making the crisis a broader test of global supply resilience.