US Keeps Hormuz Blockade in Place as Rial Weakness Hits Iran

03/05/2026

WASHINGTON, May 3: Senior US officials said Sunday that Washington’s blockade of the Strait of Hormuz remains in force, while economic and financial pressure on Iran is being intensified. Iran’s currency weakened further on Sunday, with the US dollar trading at around 1.87–1.9 million rials in the open market, according to trackers. The drop highlights deepening economic pressure and ongoing market instability as the rial continues its record slide.

Top White House economic adviser Kevin Hassett said the blockade was still active but avoided defining whether the United States is formally at war with Iran, noting that negotiations are ongoing despite heightened tensions. “I don’t know what the definition of war is when we’re not shooting, and we’re negotiating, and they’re under a lot of pressure,” he said in an interview.

Meanwhile, US Treasury Secretary Scott Bessent stated that the administration’s “Economic Fury” campaign is tightening both financial and naval pressure on Tehran. He said the measures are aimed at cutting off funding to the Islamic Revolutionary Guard Corps (IRGC) and restricting access to offshore assets.

Bessent described the campaign as a “real economic blockade,” adding that the US Navy’s presence has effectively halted maritime movement, claiming that “no ships are getting through.” He also said Washington is targeting financial networks attempting to channel funds into Iran and has identified overseas assets linked to the IRGC, which he accused of exploiting Iranian citizens.

US officials stressed that the pressure campaign involves coordinated efforts across multiple government agencies, signaling continued escalation despite the fragile regional situation.