Iran temporarily closes parts of the Strait of Hormuz for military exercises. Bloomberg reports this on the basis of Iranian state television.
The measure comes as Iran and the United States renegotiate Tehran’s nuclear program in Geneva. The oil price reacted almost immediately and turned from a loss to a slight increase.
The Strait of Hormuz is one of the most important oil shipping routes in the world. A significant part of global oil exports passes through here every day. Any disruption therefore immediately causes nervousness on the energy markets.
Military exercises and harsh warnings
According to the Iranian state broadcaster, parts of the strait will be closed for “several hours” as part of announced military exercises. The Iranian Revolutionary Guards, officially the Islamic Revolutionary Guard Corps, would control the main transit routes.
Iranian leader Ayatollah Ali Khamenei further increased the pressure with strong warnings to Washington. He stated that the United States would suffer serious consequences if it attacked Iran.
President Donald Trump has repeatedly threatened military action if talks on the nuclear program fail.
New talks in Geneva
The second round of negotiations between Iran and the US has started in Geneva and is being mediated by Oman. Previous discussions were described as positive by both parties. Iran has indicated that it is willing to discuss nuclear enrichment, but is linking concessions to relief from US sanctions.
At the same time, both countries are further expanding their military presence in the region. The United States sends a second aircraft carrier to the Middle East. Iran earlier began exercises around the Strait of Hormuz and has spoken of a “decisive” response to security threats.
Oil price up
The oil market reacted immediately to the news. Brent crude traded slightly higher at around $68 per barrel. The price is already significantly higher this year, partly due to persistent tensions between Washington and Tehran and fears of a broader escalation in the region.
Investors are closely following developments. A prolonged disruption in the Strait of Hormuz could impact energy prices, inflation and financial markets worldwide.
Source: https://newsbit.nl/spanning-loopt-op-iran-zet-straat-van-hormuz-deels-dicht-tijdens-overleg-met-vs/
