Economy June 8, 2026 01:09 PM

Lloyd Austin Says U.S. Navy Could Reopen Strait of Hormuz but Sustained Access Would Require Allies

Former defense secretary flags diplomatic obstacles and wider economic stakes as tensions between Iran and Israel complicate efforts

By Priya Menon
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Former U.S. Defense Secretary Lloyd Austin told conference attendees in London that the U.S. Navy has the capacity to reopen the Strait of Hormuz, but keeping the waterway accessible over time would be costly and depend on international cooperation. He cited recent clashes tied to Israel's strikes in Lebanon and stressed the wider economic implications of disruptions. Austin also commented on Taiwan, warning that any conflict there would have broader economic consequences than the situation in the Hormuz region.

Lloyd Austin Says U.S. Navy Could Reopen Strait of Hormuz but Sustained Access Would Require Allies
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Key Points

  • The U.S. Navy has the capability to open the Strait of Hormuz, but holding it open long-term would be costly and require international collaboration - impacts maritime security and global trade.
  • Israel’s strikes against Hezbollah in Lebanon and the resulting Iran-Israel clashes are hindering diplomatic solutions and complicating efforts to restore uninterrupted navigation.
  • Austin warned any conflict in the Taiwan Strait would have a greater effect on the global economy than current disruptions in the Strait of Hormuz, highlighting risks for global markets and trade flows.

Former U.S. Defense Secretary Lloyd Austin said the U.S. Navy can carry out operations to reopen the Strait of Hormuz, but he warned that maintaining uninterrupted access would not be sustainable without help from other countries.

Speaking at the HSBC Gulf Cooperation Council Exchanges Conference in London, Austin framed the issue as both a military capability and a diplomatic challenge. "Certainly, the United States Navy could open the Strait of Hormuz," he told Bloomberg’s London Bureau Chief Ruth David. "Holding it open for a long period of time would be pretty costly and so we’d like to see an international effort, if that’s the case."

Austin stressed that freedom of navigation through the strait matters to the entire world, not only to the United States. He made the remarks in his current capacity as a national security consultant.

The former defense chief pointed to the fighting connected to Israel’s strikes against Hezbollah in Lebanon as a significant barrier to diplomatic progress aimed at resolving tensions in the region. Those strikes prompted direct clashes between Iran and Israel, complicating negotiations and heightening the risk of maritime disruption.

"We would like to see this ceasefire hold, so that we can get negotiations completed and then we can get the strait open again," Austin said. "It’s important to not only the United States but the entire global economy. And so, the sooner we can do that, the better."

The recent exchange of fire between Iran and Israel also put pressure on U.S.-led diplomatic efforts. According to Austin, Iran and Israel later agreed to reduce strikes against each other after the violence threatened to derail talks between Washington and Tehran and after President Donald Trump called for de-escalation.

Addressing another potential flashpoint, Austin said he does not believe Chinese President Xi Jinping seeks to seize Taiwan by force. He cautioned, however, that any armed conflict in the Taiwan Strait would inflict a far greater economic shock worldwide than the current disruptions associated with the Strait of Hormuz.

The comments tie military options to wider diplomatic and economic considerations, with Austin underlining the need for allied burden-sharing if prolonged operations to secure key maritime routes are required.


Summary: Lloyd Austin stated the U.S. Navy could open the Strait of Hormuz but that long-term security of the waterway would require international participation. He identified Israel’s attacks on Hezbollah and resulting Iran-Israel clashes as factors undermining diplomacy, and warned that conflict in the Taiwan Strait would have larger global economic consequences.

Risks

  • Continued or renewed Iran-Israel hostilities could prevent diplomatic resolutions and prolong disruptions to navigation in the Strait of Hormuz - affecting shipping and energy markets.
  • Sustaining a military presence to keep the strait open would be costly and likely unsustainable without international partner support - raising questions about burden-sharing and defense resource allocation.
  • Fragility of ceasefire arrangements means de-escalation efforts could falter, risking further escalation that would complicate ongoing U.S.-Iran negotiations and broader regional stability.

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