Key TakeawaysTrump is considering seizing Kharg Island, which handles approximately 90% of Iran's crude oil exports, if the Strait of Hormuz blockage continuesThe White House is seeking to form a multinational "Hormuz Alliance" to reopen the strait, with an announcement expected this weekTrump ordered strikes on Kharg Island military facilities on Friday but did not target oil infrastructureIran is blocking oil exports from Gulf countries while allowing tankers carrying Iranian crude to pass freelyNo country has publicly committed to joining the coalition; Trump warned NATO allies that non-participation would negatively impact the allianceThe Trump administration is weighing a significant military and economic escalation in the Persian Gulf, including the potential seizure of Iran's Kharg Island oil hub, as efforts to reopen the Strait of Hormuz intensify, according to four sources cited by Axios.Kharg Island, located approximately 15 miles off the Iranian coast, is the transit point for roughly 90% of Iran's crude oil exports. US officials acknowledged that seizing the island would deliver a severe economic blow to the Iranian regime but warned it could also trigger retaliatory strikes by Iran against oil infrastructure across Gulf states.Hormuz Alliance Takes ShapeThe White House has branded its coalition-building effort the "Hormuz Alliance." Trump called for participation from China, France, Japan, South Korea, and the United Kingdom in a Truth Social post on Saturday, stating that the US and multiple nations would send warships to the Persian Gulf. Speaking aboard Air Force One on Sunday, Trump said the US is in negotiations with seven countries, some of which have already declined to participate.Trump discussed the plan with UK Prime Minister Keir Starmer by phone on Sunday and warned NATO allies that failure to respond would carry consequences for the alliance's future. As of reporting time, no country has publicly committed to joining, though senior US officials indicated they expect announcements of support this week.Strikes Already UnderwayTrump ordered strikes on military facilities on Kharg Island on Friday, though oil infrastructure was not targeted. The move signals a graduated escalation approach, with the potential island seizure representing a more dramatic step that would require US ground forces.Iran has been blocking oil exports from Gulf countries while permitting tankers carrying Iranian crude to pass freely through the strait -- a selective disruption that has heightened tensions with regional oil exporters and global energy markets.Macro Risk for CryptoA sustained Hormuz disruption or military escalation involving Gulf oil infrastructure carries significant macro implications for risk assets including crypto. Oil price shocks historically tighten financial conditions and weigh on high-beta assets, though Bitcoin has at times traded as a geopolitical hedge during periods of acute uncertainty. Traders will be watching for any coalition announcements or further escalation this week as a potential volatility trigger.