War Secretary Pete Hegseth said U.S. forces are fully prepared to escalate military pressure on Iran, warning that American naval operations enforcing a blockade could expand if Tehran does not agree to terms under ongoing negotiations, according to a New York Times report and defense officials.

Hegseth emphasized that U.S. forces in the region are “locked and loaded,” signaling readiness to resume full combat operations if ordered, a message echoed in remarks at the Department of War alongside senior military leadership, according to reporting first detailed by the New York Times and confirmed in other briefings.

The comments come as the United States continues enforcing a naval blockade on Iranian ports, an operation that began earlier this week and has already resulted in multiple vessels being turned away without direct confrontation, according to U.S. Central Command statements and defense briefings cited across multiple outlets.

Military officials say the operation is designed to restrict Iran’s ability to move oil and military-linked cargo through critical waterways, including pressure around the Strait of Hormuz, one of the world’s most important energy corridors, as described in U.S. military documentation and independent reporting on the blockade’s scope.

Early market signals suggest the operation is already beginning to ripple through global shipping and energy markets, with traders pointing to higher crude oil volatility and rising fuel costs amid fears of broader disruption in Hormuz traffic, according to energy market reporting and trading desk assessments cited across financial outlets.

Analysts have also warned that sustained pressure on the waterway could eventually impact refined fuel supplies, including jet fuel used in aviation and key feedstocks for fertilizer production, raising concerns about knock-on effects for global food and transport costs, according to commodity market analysts cited in recent coverage.

According to officials cited in defense briefings, more than 10,000 U.S. personnel have been assigned to the mission, with naval and air assets supporting interdiction operations aimed at Iranian-linked shipping. So far, no ships have attempted to forcefully breach the blockade, and most have complied with diversion orders, according to U.S. Central Command updates.

Hegseth also reiterated the administration’s broader strategic goal of preventing Iran from advancing its nuclear capabilities, framing the current military posture as part of a wider deterrence campaign that could be adjusted based on Iran’s response to diplomatic proposals, according to the New York Times account of his remarks.

The administration’s approach reflects a continued hardline stance following months of escalating tensions in the region, including previous strikes and counterstrikes involving Iranian forces and U.S. and allied assets, as documented in recent reporting from multiple major outlets.

At the same time, officials say diplomatic channels remain open, with the White House signaling it prefers a negotiated settlement but maintaining that military pressure will remain in place as leverage, according to the same sources.