Treasury Secretary says U.S. has 'absolute control' over Hormuz

United States Treasury Secretary Scott Bessent said on May 4 that Washington, not Tehran, holds dominion over the Strait of Hormuz

Speaking to Fox News, he also urged allies to join the American-led "Project Freedom" operation to escort stranded ships through the vital waterway.

"The Iranians do not have control of the Strait. We have absolute control of the strait," Bessent said.

The Strait is one of the world's most critical chokepoints and it is responsible for over a fifth of global oil flows. Bessent put the daily supply shortfall from the ongoing standoff at between 8 and 10 million barrels.

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Bessent calls on China to pressure Iran

He directed particular pressure at Beijing, pointing out that China absorbs the vast majority of Iranian oil exports, effectively bankrolling Tehran's government.

"Let's see them step up with some diplomacy and get the Iranians to open the strait," Bessent said. "Iran is the largest state sponsor of terrorism, and China has been buying 90% of their energy, so they are funding the largest state sponsor of terrorism."

The remarks come just a week ahead of President Donald Trump's scheduled meeting with Chinese President Xi Jinping in China.

Bessent estimated that each crude carrier passing the Hormuz carries around 2 million barrels. With 150-200 such vessels ready to move, he said that the "market is going to be very well supplied" with 4-5 ships exiting daily.

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Iran pushes back with conflicting claims

Iran wasted little time mounting a counter-narrative. State authorities released a new maritime map and a string of official statements insisting their grip on the strait remains unbroken.

Military spokespeople claimed Iranian forces had turned back American destroyers at the entrance to the strait, and that missiles had found their mark on a U.S. vessel. Washington dismissed both assertions outright.

IRGC also rejected the claims from the U.S. that two vessels had passed the Strait, calling them "baseless and complete lies."

IRGC spokesman Hossein Mohebbi sought to frame Iran's position as one of orderly management rather than confrontation, though his warning was pointed.

"Other maritime movements that violate the IRGC Navy's declared principles will face serious risks. Violating vessels will be forcefully stopped," Mohebbi said.

Crypto rebounds after U.S. confirmation

The conflicting reports rattled markets early. Bitcoin lost its footing from $80,000 and slid back to trade around $78,000.

However, once Washington confirmed, Bitcoin (BTC) rebounded 1.8% in the past hour to trade at $80,250.81 at press time.

The recovery spread across the board. Ethereum (ETH) climbed 1.6% in the past hour to $2,368.76. XRP gained 1.2% to $1.41, while Solana (SOL) jumped 1.3% to $84.94.

Oil markets remained elevated, with WTI crude trading at $103 per barrel and Brent at $111 per barrel.

Related: ‘Bombs will start going off’ if Iran deal fails, warns Nobel Peace Prize nominee