The move, affecting about $500M in proceeds from Iraqi oil sales, comes as Washington pushes for a new prime minister who will dismantle Iranian-aligned militias.

The Pentagon assessment, shared in a classified briefing for lawmakers, suggests gasoline and oil prices could remain elevated through the midterm elections.

The chief opponent of the loan, Hungarian Prime Minister Viktor Orban, lost his campaign for reelection this month.

Iran seized two container ships in the contested strait, state media said, further complicating diplomatic efforts to end the war that began Feb. 28.

The capture of the tanker ship Tifani follows a Trump administration directive to interdict sanctioned vessels believed to be involved in smuggling Iranian oil.