Energy Secretary Chris Wright said Wednesday that U.S. military escorts of commercial vessels have effectively stripped Iran of its ability to shut down the Strait of Hormuz, the critical global oil transit route as the center of the Iran conflict.

Speaking at the Reuters Global Energy Summit, Wright said Iran has lost its ability to use the strategic waterway as leverage. "Iran will not have the ability to close the Strait of Hormuz going forward," he said.

"That's their key leverage and we're taking that leverage away from them."

Wright said commercial shipping has continued through the waterway despite Iran's declaration over the weekend that the strait was closed.

"I could say roughly 72 ships in the last 24 hours, and 20 million barrels of oil," he said, referring to vessel traffic through Hormuz under U.S. naval protection.

Beyond the immediate security concerns, keeping oil flowing through the Strait of Hormuz carries significant political and economic implications for the Trump administration.

Any prolonged disruption in the waterway could drive crude prices sharply higher, raising gasoline and energy costs for U.S. consumers.

Republican lawmakers heading into the 2026 midterm elections have emphasized the importance of keeping inflation and household energy expenses in check, making stable oil markets a key policy objective.

The energy secretary said Washington could restore military pressure if Tehran fails to meet U.S. demands.

"If we can get no deal with Iran, we will assure that the flow of energy is there, the world is well supplied and the Iranian administration will be in a world of hurt," Wright said.

Wright also downplayed the significance of a 60-day U.S. sanctions waiver on Iranian oil exports, saying Tehran has yet to receive substantial economic benefits.

"We haven't unfrozen any funds, they haven't got anything meaningful yet," he said.

"They could get meaningful things from us, but they have to deliver meaningful wins for us and security for the world."