Iran Declares Economic War as Ships Burn in the Strait of Hormuz
As Operation Epic Fury enters its 12th day, Iran has issued its most provocative economic threat yet — warning the world to brace for oil prices hitting $200 a barrel as its forces fire on merchant ships and lay mines across the Strait of Hormuz, the narrow waterway through which 20% of the world’s oil flows.
The warning came on March 11 as Iran’s Revolutionary Guards declared they would not allow “one litre of oil” to be exported from the Middle East if U.S. and Israeli airstrikes continue. At least three commercial vessels were struck by projectiles near the Strait of Hormuz overnight, with crew members aboard a Thai-flagged vessel believed to be trapped in the engine room after their ship was set ablaze.
The International Energy Agency has responded by recommending the largest-ever coordinated release of strategic petroleum reserves, with 32 nations agreeing to tap emergency oil stocks to dampen what analysts are calling the worst energy shock since the 1970s.
Trump: Iran Is ‘At the End of the Line’
President Trump struck a defiant tone on Wednesday, claiming U.S. forces have now destroyed 58 Iranian naval vessels and declaring that Iran is “pretty much at the end of the line.”
“They’ve got no navy, they’ve got no air force, they’ve got no anti-air traffic anything. They have no systems of control. We’re just riding free range over that country,” Trump told reporters at the White House.
But when asked about a timeline for ending the conflict, the President made clear he’s not ready to pull back: “We don’t want to leave early, do we? We got to finish the job.”
Trump also addressed the Strait of Hormuz directly, saying the U.S. would “look very strongly” at securing the waterway. “The straits are in great shape. We’ve knocked out all of their boats. They have some missiles, but not very many,” he said — though an Iranian military spokesperson shot back that the strait is “undoubtedly” under Iran’s control.
Sources cited by Reuters say Iran has deployed approximately a dozen naval mines in the Strait, further complicating any effort to reopen the critical shipping lane.
FBI Warns of Iranian Drone Threat to California
In a chilling development on the home front, the FBI has warned California law enforcement agencies that Iran may attempt to launch drone attacks against targets on the U.S. West Coast in retaliation for Operation Epic Fury.
According to a bulletin obtained by CBS News, the FBI warned that Iran “allegedly aspired” to launch offensive drones at California in a potential seaborne “surprise attack.” The warning prompted responses from California Governor Gavin Newsom, who said the state is “prepared,” and San Francisco Mayor Daniel Lurie.
However, officials stressed that no specific, credible threat has been identified. The New York Times reported that the FBI memo was issued before the war began, reflecting intelligence about Iran’s potential response capabilities rather than an imminent operational plan.
President Trump downplayed the threat, telling reporters he is “not worried” about Iran launching strikes on U.S. soil.
Iran and Hezbollah Launch Coordinated Strikes on Israel
Despite the Pentagon describing its air campaign as the most intense since the war began, Iran demonstrated it can still fight back — and in coordination with its allies.
On Tuesday, Iran and Hezbollah launched simultaneous missile and drone strikes against Israel in what the IDF described as an “integrated” attack. Iran fired cluster munition-equipped ballistic missiles — weapons designed to disperse submunitions over a wide area to maximize casualties — while Hezbollah unleashed rocket barrages from Lebanon targeting northern Israel.
Sirens sounded across northern Israel as residents were urged to stay near shelters. The coordinated assault marked a significant escalation, with analysts noting that Iran appears to be rationing its remaining missile stocks for maximum strategic impact rather than firing indiscriminately.
Israel responded with what the IDF called “large-scale” airstrikes on Beirut’s Dahiyeh district, demolishing buildings it said were used by Hezbollah. The IDF confirmed it has struck over 70 targets in Beirut’s south since the war began, including 50 multi-story buildings.
The war has now killed approximately 2,000 people, mostly Iranians and Lebanese, according to Reuters.
The Global Oil Shock: 32 Nations Tap Emergency Reserves
The economic fallout from the Strait of Hormuz crisis is rippling across the globe. Oil prices have surged past $110 a barrel, and Iran’s threat of $200 oil has sent shockwaves through financial markets.
The G7 nations — the United States, Canada, Japan, Italy, Britain, Germany, and France — have agreed to examine providing military escorts for commercial ships attempting to navigate the Gulf. It’s a dramatic step that underscores just how dangerous the waterway has become.
Meanwhile, Iran has continued to selectively control who passes through the strait. CNBC reported that Iran has shipped at least 11.7 million barrels of crude oil through the waterway since the war began — all destined for China. Many commercial vessels have “gone dark,” turning off their tracking transponders after Tehran threatened to attack any ship attempting to pass without permission. Iran has also granted safe passage to Bangladeshi oil and LNG vessels under a new agreement requiring advance notification.
The selective blockade has created a two-tier system: Iran’s allies and trade partners get through; everyone else faces mines, missiles, and burning wreckage.
Iran Targets Gulf Neighbors
Iran’s retaliatory strikes have spread far beyond Israel. Saudi Arabia’s Defense Ministry reported intercepting 13 Iranian drones targeting multiple locations, including the critical Shaybah oil field, along with six ballistic missiles aimed at Prince Sultan Air Base. Qatar intercepted a missile that reportedly flew over Doha. Kuwait shot down four drones and reported several others falling outside threat areas.
Dubai International Airport was targeted by two drones, temporarily disrupting operations at one of the world’s busiest aviation hubs. The UAE’s ambassador to the United Nations helped lead a Security Council resolution condemning the Gulf attacks, which passed 13-0.
The State Department has also warned that Iran and aligned militias may be planning to target U.S.-owned oil and energy infrastructure in Iraq, noting that militias have previously targeted hotels frequented by Americans.
Where the War Stands: Day 12
As Operation Epic Fury enters its second week, the military picture is complex:
U.S./Israeli Achievements: Over 3,000 targets struck across Iran. Iranian navy largely destroyed (58 vessels per Trump). Drone production facilities hit, including the Shahed Aviation Industries facility in Isfahan. IRGC headquarters, Basij bases, and defense industrial assets degraded. Air superiority maintained with no contested airspace.
Iran’s Continued Capabilities: Ballistic missiles still operational, though stocks are dwindling (over 500 fired so far). Strait of Hormuz effectively blocked with mines and anti-ship missiles. Hezbollah coordination ongoing. Drone and missile attacks on Gulf neighbors continuing. Ability to threaten commercial shipping intact.
The Human Cost: Six U.S. service members killed in action. Approximately 2,000 total casualties, mostly Iranian and Lebanese. Israel reporting 64 killed in Lebanon strikes. Iran’s UN ambassador claims nearly 10,000 civilian sites hit, including 8,000 residential homes, with over 1,300 civilian deaths.
The war shows no signs of ending soon. Trump’s “finish the job” rhetoric suggests the U.S. is prepared for a longer campaign, while Iran’s economic warfare — targeting oil markets and shipping — indicates Tehran believes it can impose enough pain to force negotiations, even as its conventional military is systematically dismantled.
One thing is clear: after 12 days, this war is far from over — and its consequences are being felt in gas stations, stock markets, and FBI briefing rooms from the Persian Gulf to the coast of California.