Hegseth Says Iran Naval Blockade Remains in Place, US Ready to Resume Military Action if Talks Fail

U.S. Defense Secretary Pete Hegseth said the naval blockade against Iran remains in place and that Washington is prepared to resume military intervention if negotiations break down. Markets are closely watching U.S.-Iran talks and developments in the Strait of Hormuz.

The BBC reported on May 30 that Hegseth made the remarks at a press conference after the Shangri-La Dialogue, an Asian security summit in Singapore. He said operations enforcing the blockade on Iran remain firmly in place.

The Strait of Hormuz came up repeatedly in bilateral meetings during the conference, he said. Hegseth added that the waterway would remain a toll-free strait open to free passage for the entire world.

On the operation of U.S. military bases in the Middle East, Hegseth said all decisions rest with President Donald Trump. For now, the focus is on maintaining readiness and preparing to reengage militarily if needed, he added.

The United States and Iran have recently continued talks over extending a ceasefire, resuming nuclear negotiations and restoring normal transit through the Strait of Hormuz. Major differences remain, however, over control of the strait, uranium enrichment and the scope of sanctions relief.

Markets are assessing whether the outcome of U.S.-Iran negotiations and access through the Strait of Hormuz could drive volatility across global financial markets, including oil and gold.