The Purpose Behind the Iran Blockade

US Implements Naval Blockade Against Iran

The United States has initiated a naval blockade targeting Iran, a measure I have supported for several weeks. This action, essentially restricting Iranian oil exports, presents both advantages and disadvantages, as I explored in a previous article. However, at this stage, the benefits significantly surpass the drawbacks.

There are two main reasons for my perspective. Firstly, Iran's contribution to the global oil supply is modest, so removing its output from the market is unlikely to drive Brent crude prices much higher than $120 per barrel—a level that international markets are already familiar with and can absorb. Secondly, similar to Russia, Iran relies heavily on cash flow from its oil sales.