Anthony Scaramucci said Monday that Iran’s closure of the Strait of Hormuz amounts to “economic warfare,” arguing that Tehran is trying to inflict global pain rather than merely answer U.S.-Israeli strikes with a military response.
Scaramucci Calls Hormuz Closure Economic Warfare
In a post on X, the former White House communications director wrote, “The Strait of Hormuz closure isn’t just Iran’s retaliation—it’s economic warfare holding 20-30% of global oil hostage.” He added that the stakes include “Skyrocketing energy prices, supply chain chaos, and recession risks for Asia/Europe.”
Scaramucci said U.S. and Israeli strikes were trying to reopen the waterway by force, but warned that “without a deal, this drags into proxy hell,” adding, “Best case? Partial flow in 3-5 weeks.”
Traffic Collapse Deepens Global Supply Risks
His timing reflects a market already under severe strain. The U.S. Energy Information Administration said the strait carried about 20 million barrels a day in 2024, or roughly one-fifth of global petroleum liquids consumption, while about one-fifth of global LNG trade also moved through the passage, mostly from Qatar. The agency also estimated that 84% of Hormuz crude and condensate flows and 83% of LNG flows went to Asian markets.
Broader market data show how sharply traffic has deteriorated. The International Energy Agency said oil and product flows through Hormuz, which averaged about 20 million barrels a day before the war, had fallen to a trickle and then to less than 10% of pre-crisis levels, while Reuters reported Middle East Gulf oil exports were down at least 60% in the week to March 15.
IEA analysts in a market report last Thursday said any restart would require credible tanker escorts, insurance backstops and traffic-management measures, suggesting a quick reset is unlikely.
Trump Struggles To Rally Allies
Scaramucci’s warning also lands as President Donald Trump presses allies to help reopen the strait, a push that has met resistance. The Associated Press reported that no country had formally committed warships, and Reuters said Germany, Spain and Italy had rebuffed Washington’s request while the European Union showed “no appetite” to expand its naval mission there.
At the time of writing, oil prices were on the up. WTI Crude April 26 futures up 2.66% to $95.99 per barrel, while Brent crude gained 2.68% to $102.89.
Photo courtesy: Al Teich / Shutterstock.com
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