NATO Considers Deployment to Strait of Hormuz Amid Ongoing Blockade
NATO is reportedly considering deploying a mission to the Strait of Hormuz if the vital waterway remains closed by July. The strategic passage has been largely blocked since late February, following Iran's deployment of its navy in response to the US and Israel's air strikes against the country. Despite this, Iran continues to maintain control over the Strait of Hormuz, which serves as a critical shipping lane for global oil supplies. Meanwhile, the US military has imposed its own blockade on Iranian ports.
The Strait of Hormuz typically sees around one-fifth of all global oil passing through it daily. However, due to the ongoing closure, oil prices have surged dramatically. This situation has led to a significant shift in NATO's strategy regarding the Middle East.
Although former US President Donald Trump has tried to involve international partners in his war efforts, NATO has maintained that it will only get involved once hostilities cease and a broad coalition including non-NATO members is formed. A diplomat recently told Bloomberg that the idea of sending a mission to Hormuz is gaining momentum, although unanimous support has not yet been achieved.
A senior NATO official noted that while some member nations still oppose authorising a mission, they are likely to support the plan if the blockade persists. 
NATO Divided Over Iran War
The conflict in Iran has created divisions within NATO. Some member states, such as Spain, have refused to engage and denied Trump access to their bases. Others have allowed the US to use their facilities for logistical support. Trump has criticized his NATO allies for their reluctance to participate in his war, recently announcing the withdrawal of 5,000 troops from Germany.
Trump, who has always seen himself as an effective dealmaker, appears to have encountered resistance from Iran. His tough talk, threats, and even military actions have not moved Tehran from its established positions. With shifting goals making it difficult to assess the status of the US effort, Trump and his top aides have claimed that the US has already won the war and that Iran is ready to reach an agreement after escalating US threats during a fragile ceasefire.
However, Trump recently backed down, stating that he would delay plans for an imminent resumption of attacks on Iran at the request of Gulf Arab states. He said, "Serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond." 
US Treasury Steps Up Sanctions Against Iran
As the Trump administration seeks to pressure Tehran to reopen the Strait of Hormuz and restore vital oil flows disrupted by US-Israeli attacks on Iran, the US Treasury has intensified its sanctions efforts through a program called 'Economic Fury.' This initiative aims to disrupt Iran's shadow banking networks and has frozen nearly half a billion dollars worth of cryptocurrency linked to Iran's regime.
To enhance the effectiveness of these measures, the Treasury is modernizing its sanctions architecture because "our adversaries adapt and innovate" by creating new shell companies. Most US Treasury sanctions are imposed on individuals, companies, and entities listed on its Specially Designated Nationals List. This list contains tens of thousands of designees who are cut off from the dollar-based financial system and have their assets frozen. Anyone engaging with designated entities risks being sanctioned themselves.
Modernizing Sanctions for Greater Effectiveness
"To sharpen national security outcomes, Treasury is tailoring our sanctions program for the 21st century," said Scott Bessent, the US Treasury Secretary. "We are reviewing outdated and obsolete designations to help financial institutions focus on the most sophisticated terrorist financing and sanctions evasion schemes."
Bessent emphasized that the most effective sanctions are aggressive and targeted, and those left in place too long could lead to unintended consequences. "Sanctions are meant to change behaviour, not to punish populations," he said. "Sanctions left in place for years with no visible and tangible changes in behaviour can have generational impacts that are nearly impossible to predict."
He added that the Treasury's approach would ensure agility to maximize effectiveness and cited examples of easing sanctions on Syria and Venezuela after regime changes as evidence of how the Trump administration intends to adjust sanctions. 
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