Washington, August 20, 2026 (Yes Punjab News)
US President Donald Trump has warned that Iran could face “very Draconian sanctions” as Washington considers further measures against Tehran, while suggesting that the strategic Strait of Hormuz may become less important to global energy markets.
Speaking at the White House, Trump said the Strait of Hormuz, a crucial shipping route connecting the Persian Gulf with the Arabian Sea, remained open and that vessels were continuing to pass through it.
“Right now, the Strait is open; we’ve got a lot of boats coming through,” Trump said, adding that traffic could slow at some point.
He claimed that a US naval blockade had been effective in preventing ships from reaching Iran, although he did not provide figures to support the assertion.
“The naval blockade has been extremely effective. No boats have gotten into Iran, but they are getting in for other places,” Trump said.
Asked about potential new sanctions, Trump said the US had the ability to impose severe measures. “We have things that we could sanction. We have very Draconian sanctions, and we’ll see what happens,” he said.
Trump also said the situation could develop in one of two directions — either through an agreement that would sharply reduce oil prices or through a continuation of the current US strategy.
“It’ll either be extremely good, and oil prices are going to drop like a rock, or we’ll continue to do exactly what we’re doing,” he said.
Addressing concerns over a possible surge in oil prices, Trump said earlier predictions of prices reaching $350 a barrel had not materialised. He said oil was currently trading at around $84-$85 a barrel and attributed the relatively lower prices partly to increased US production.
Trump also pointed to new energy infrastructure and alternative supply sources in Texas, Alaska and Louisiana, as well as the construction of pipelines, arguing that these developments had reduced dependence on the Strait of Hormuz.
“So, I think the Hormuz Strait is not going to be quite as important as it was in the past,” he said.
His remarks came during a White House event attended by leaders from the finance, cryptocurrency and technology sectors. Trump had been asked about a statement by the Treasury Secretary indicating that the administration could announce its most consequential sanctions against Iran during the week.
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