The Trump administration talked tough on the Iran war at a press briefing hosted by the Department of War regarding the ongoing Strait of Hormuz blockade on Thursday morning. The market reaction, however, was muted.
The press briefing was attended by Defense Secretary Pete Hegseth, Chairman of Joint Chiefs Gen. Dan Caine and CENTCOM Commander Admiral Bradley Cooper, who provided details from the frontline.
Locked and Loaded: Hegseth said the blockade that is being enforced following the failed Islamabad talks would continue as long as necessary. “We are reloading with more power than ever before and more importantly with better intelligence than ever before,” he warned. “We are locked and loaded on your critical dual-use infrastructure, on your remaining power generation and on your energy industry.”
The defense secretary said the U.S. has control over the traffic going in and out of Hormuz as it has real assets and real capabilities, and is doing so with less than 10% of its naval power.
Hegseth said that aside from Operation Epic Fury, the code name for the U.S.’s current operation in the Middle East, the Treasury, led by Secretary Scott Bessent, is launching economic fury as well, “maximizing economic pressure” across the entirety of the government.
Updating on the Hormuz blockade, Gen. Caine said the blockade that began on Monday applies to all ships regardless of nationality, heading into or from Iranian ports, and that it is not a blockade of Hormuz.
“Do not attempt to breach the blockade,” Caine said. “Vessels will be boarded for interdiction and seizure, transiting to or from Iranian ports: Turn around or prepare to be boarded if you do not comply with this blockade. We will use force, and as this message is being transmitted, as I mentioned earlier, those shipmasters can literally see, sense and feel the pressure around them.”
The House of Representatives will vote on Thursday on whether to rein in President Donald Trump’s war with Iran.
How Markets Reacted: The West Texas Intermediate (WTI) grade crude oil futures contract, which fell sharply very early on Thursday, touching a low of $87.32, has since pared its losses. It traded up 2.37% at just over $90-a-barrel. The S&P 500 Index, which closed at a fresh high on Wednesday, fell immediately after the March industrial production report.
The Federal Reserve’s March industrial production report showed a 0.5% drop in output, belying expectations for a 0.1% rise.
At last check, the index traded with modest losses.
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