Chile's foreign ministry said it will close its embassy in Iran on Aug 31 but will not sever diplomatic relations, calling the decision a 'preventive' response to security developments in the Middle East.

Analysts say President Trump is pursuing new sanctions, a maritime blockade and pressure on Iran's trading partners to achieve by economic isolation what bombs and missiles could not — force Iran to accept US terms. Iran’s Islamic Revolutionary Guard Corps (IRGC) effectively controls the Strait of Hormuz and has repeatedly launched large numbers of attack drones into the Persian Gulf; the IRGC is largely impervious to economic pressure and retains substantial retaliation options. Treasury Secretary Bessent will unveil details on Monday of a plan to shift confrontation from regional air strikes to comprehensive economic isolation. If the economic squeeze takes hold, Iran is likely to respond with military strikes targeting Gulf energy infrastructure to push oil prices higher and raise the cost of US action, potentially forcing a US policy reversal.

Axios, citing US officials, reported about 16 million barrels of oil transited the southern route of the Strait of Hormuz on Friday night.