Trump rejects Iran Hormuz offer, keeps port blockade

**Summary:** President Donald Trump has discussed with oil executives maintaining the U.S. naval blockade on Iranian ports for an extended period, possibly "for months if needed," while Iran simultaneously keeps the Strait of Hormuz closed to oil tankers. Trump rejected Tehran's proposal to reopen the strategic waterway in exchange for lifting the American port blockade, stating the blockade is "somewhat more effective than the bombing" and that Iran cannot have a nuclear weapon. The mutual blockade creates a mounting economic standoff with severe global implications, as the war between the two nations began on February 28. According to experts, Iran has only approximately 20 to 26 days before its oil storage capacity reaches critical levels, potentially forcing production cuts that experts say can be managed orderly to avoid permanent infrastructure damage. Homayoun Falakshahi of Kpler stated that if the blockade persists for two months, Iran's oil revenues, currently between $5 and $6 billion monthly, could drop to zero. Iran has positioned 120 million barrels of oil on tankers east of the blockade for delivery to customers including China, representing roughly two months of revenue. The Iranian rial collapsed to a historic low of 1.8 million per dollar on Wednesday, while Asian markets fell sharply with Tokyo's Nikkei down 1.05 percent and Seoul's Kospi down 1.38 percent. Food prices in Iran have surged dramatically, with chicken prices rising 75 percent and beef and lamb up 68 percent in the past month alone. The economic pressure intensifies as annual inflation in Iran reached 53.7 percent in Farvardin, the highest rate recorded since 1943, with point-to-point inflation at 73.5 percent. The dollar strengthened against the yen and gold prices rose as markets perceived uncertainty in the region. Anthony Kettle of RBC BlueBay Asset Management warned that markets do not yet fully incorporate the potential deterioration from a prolonged Middle East conflict. The blockade stretches from the Gulf of Oman to the Arabian Sea, with Kpler confirming no Iranian tankers have passed through the zone, dropping Iran's oil exports from 2.1 million barrels per day before the war to just 567,000 barrels per day. Analysts suggest Iran's leadership prepared for this scenario after observing sanctions on Venezuela, with Rapidan Energy's Fernando Ferreira noting that Tehran appears prepared to hold out for months, potentially longer than Trump's intended timeline for results.