Oil and Commodity Markets

The United States, enforcing a naval blockade of Iranian ports that took effect this month, is reportedly preparing to use the same lethal "kill" tactics it has applied against drug-smuggling boats in the Caribbean and eastern Pacific to counter Iranian fast-attack craft that threaten blockade operations in and around the Strait of Hormuz. U.S. officials and President Trump have signaled a hard line: CENTCOM has publicly asserted that U.S. warships have stopped merchant traffic into and out of Iranian ports in the first days of the blockade, and Trump warned any Iranian boats approaching the blockade would be "immediately ELIMINATED," invoking the Southern Command playbook of since-September 2025 strikes that killed more than 160 suspected smugglers and destroyed dozens of vessels. U.S. destroyers also reportedly interdicted outbound tankers from Chabahar and ordered multiple ships to return, even as Iran and some carriers seek to test enforcement by masking movements or turning off AIS transponders.