Hormuz Strait crisis: Hegseth says oil flow fears overblown

U.S. Defense Secretary Pete Hegseth downplayed concerns about global oil supply disruptions linked to the ongoing conflict with Iran, saying the situation in the Strait of Hormuz is being managed. Speaking to reporters at the Pentagon, Hegseth said the U.S. military is monitoring Iranian activity in the waterway but added that there is “no need to worry about it.” He described Iran’s actions in the strait as a sign of “desperation.”

The conflict involving the United States and Israel has significantly disrupted shipping through the Strait of Hormuz, one of the world’s most critical energy chokepoints. The narrow waterway handles roughly 20% of global seaborne oil trade, making it a vital corridor for crude exports from major producers such as Saudi Arabia, Iraq, the United Arab Emirates and Qatar.

Security threats and rising military tensions have caused tanker traffic to slow sharply, with some shipments effectively halted. Analysts warn that the conflict has created severe uncertainty for global energy markets, with the International Energy Agency describing the disruption as potentially the largest supply shock in history.

The U.S. government is considering additional measures to stabilize energy flows in the region. Officials have indicated that the U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary to ensure safe passage. Market observers say a prolonged disruption in the strait could drive oil prices higher and trigger broader volatility across global financial markets.