President Donald Trump is considering ending the Iran war without requiring the reopening of the Strait of Hormuz, which Iran has blocked since late February.
According to the Wall Street Journal, Trump and aides assessed that reopening the waterway would exceed his four to six-week timeline. Trump's strategy aims to disable Iran's navy and missile stocks, then pursue diplomatic pressure on Tehran to restore trade flow.
If diplomacy fails, the administration would press European and Gulf allies to reopen the strait.
The waterway handles 20% of global energy trade. Iran expert Suzanne Maloney, vice president at the Brookings Institution, condemned the approach as "unbelievably irresponsible," warning that energy markets are inherently global and the U.S. cannot shield itself from escalating economic damage if the Strait closure continues.
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Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday. The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction. “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more