IRGC Blocks Energy Exports Amid US Naval Blockades, Sending Markets into Turmoil

The Iranian Revolutionary Guard Corps has imposed a blockade on oil and gas exports from the Middle East in response to US naval blockades on Iranian ports. This move effectively weaponizes the global energy supply, affecting nearly one-fifth of the world's oil and natural gas trade that passes through the Strait of Hormuz.

The crisis began in late February 2026 when US and Israeli strikes on Iranian targets triggered retaliatory threats from Iran. The situation has deteriorated since then, with tanker traffic through the strait dropping to near zero in March 2026.

The IRGC's declaration was a direct response to the US naval blockade, asserting that energy resources will be available to all or none at all. This stance led to a surge in oil prices, with Brent crude increasing from around $71 per barrel to a wartime peak of $138.21 per barrel in April 2026.

The crypto connection is significant, as IRGC-affiliated networks have been responsible for over $3 billion in crypto transactions related to oil trading as of late 2025. This parallel financial system uses Bitcoin and Tether (USDT) to circumvent Western sanctions, providing a fast, borderless, pseudonymous payment mechanism.