Vice President JD Vance has endorsed President Donald Trump’s economic measures against Iran, citing them as effective in reopening the Strait of Hormuz for oil and gas transit.

Strait of Hormuz and Oil Flow

During an interview on The Clay and Buck Show, Vance stated that oil prices had "come down substantially from their high point" because the US military enabled the movement of oil and gas through the waterway. Energy Secretary Chris Wright echoed this assessment.

Vance described the Strait as a "leverage point" for Iran. He noted that increasing transport volumes would provide Americans with "ease at the pump" while punishing Tehran for targeting commercial ships. The administration aims to prevent Iranian attacks on vessels, which Vance claimed they have been "quite successful" at curbing.

Economic Pressure Strategy

Vance characterized the situation as a "new phase" where economic pressure is the "most effective tool" available. The strategy targets Iran’s weapons manufacturing capabilities and aims for denuclearization. He warned that the situation remains "delicate," as Iran might attempt to apply reciprocal economic pressure on the US.

EPA Fuel Waiver and Diesel Prices

The Environmental Protection Agency issued an emergency fuel waiver on Thursday to allow an early shift to winter gasoline blends. This move is expected to increase supply by hundreds of thousands of barrels per day and lower pump prices.

Meanwhile, diesel prices remained elevated. The diesel crack spread, representing refiners’ profit margins for converting crude into diesel, reached $102/bbl.

US Treasury Secretary Scott Bessent warned Thursday that any nation maintaining ties with Iran will face severe economic consequences. He described the administration's strategy as the toughest sanctions in history aimed at coordinated economic isolation.

Bessent stated that remaining ties to Tehran would "hasten a nation's economic oblivion," whether purposefully constructed or willfully ignored. This warning echoed President Donald Trump's earlier characterization of the effort as the "most crushing economic operation ever taken against any country."

Policy Details

• The strategy combines a naval blockade with maximum economic pressure.
• Enforcement actions target nations continuing trade with Tehran.
• The goal is to reduce Iran's proxy capabilities through financial constraints.
• Bessent framed this as an alternative to kinetic conflict, aiming to avoid a restart while curtailing Tehran's actions.

Pressure Campaign and China

Speaking on CNBC, Bessent called the campaign the "greatest coordinated economic isolation in the history of the world." He told allies they must choose between the US and continuing business with Tehran or face enforcement from the US Treasury.

When asked if the pressure campaign extends to China, Iran's largest economic partner, Bessent declined to detail specifics. He noted that China relies on the Gulf for roughly half its energy needs and suggested cooperation would "do them a big service."

Geopolitical Context

The warnings follow the expiration of a 60-day US-Iran ceasefire without a broader peace deal. A senior Iranian official has threatened a "fully offensive" posture. Meanwhile, Joe Kent, Trump's former counterterrorism chief, warned the pressure campaign could backfire by prompting Iran to strike US troops in the region.