Iran Shuts Hormuz Shipping Lane Mid-Nuclear Talks, Oil Markets Slide

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Ac Strait Of Hormuz Map
Ac Strait Of Hormuz Map

Iran partially closed the Strait of Hormuz on Tuesday for several hours and fired live missiles into the waterway during a military exercise, a rare and calculated show of force timed to coincide with a new round of indirect nuclear negotiations with the United States in Geneva, rattling energy markets and deepening one of the most volatile standoffs in the Gulf in decades.

Iran’s Islamic Revolutionary Guard Corps (IRGC) launched the drills, which it named “Smart Control of the Strait of Hormuz,” deploying naval combat and rapid-reaction units with a range of offensive and defensive systems, including drones capable of reconnaissance and attack missions under electronic jamming conditions. The exercise was launched from Iran’s Persian Gulf islands, including Abu Musa, Greater Tunb, Lesser Tunb and Sirri.

The partial closure was the first time Iran has shut sections of the Strait of Hormuz since United States President Donald Trump threatened Tehran with military action in January. Iran experts noted it was an unprecedented step, distinct from past instances where Tehran harassed individual vessels. Iran last closed the strait during its war with Iraq in the 1980s, when it mined the waterway.

The strait carries approximately 20 million barrels per day, accounting for roughly 20 percent of global petroleum liquids consumption, making it the world’s most critical oil transit chokepoint. Only Saudi Arabia and the United Arab Emirates have operating pipelines capable of circumventing it.

IRGC navy commander Alireza Tangsiri, speaking as he oversaw the main phase of the exercise, said the decision to close the strait permanently rested with senior Iranian leadership. “As a soldier I say we are ready to carry it out whenever our leaders say,” he told reporters. Supreme Leader Ayatollah Ali Khamenei sharpened the message further, saying that while an American aircraft carrier was a dangerous machine, “more dangerous than it is the weapon that can send it to the bottom of the sea.”

Shipping industry official Jakob Larsen, chief safety and security officer at Bimco, which represents global shipowners, said the temporary closure was likely to cause “minor nuisance and delays” to inbound shipping headed for the Persian Gulf but no major disruptions.

Separately, United States Central Command said its forces shot down an Iranian drone that had approached the USS Abraham Lincoln carrier strike group in the Arabian Sea, and also intervened when armed Iranian vessels harassed a United States-flagged merchant ship transiting the strait.

Despite the military posturing, diplomatic contact continued. Iran’s foreign ministry spokesman Esmail Baghaei said Tehran arrived at the Geneva talks with “good intentions and seriousness,” adding that the time factor was crucial. He expressed hope Washington would demonstrate “the same level of seriousness and good intention.” Iran’s Foreign Minister Abbas Araghchi separately described the Geneva sessions as opening a new window toward a possible agreement.

Oil prices fell after the day’s talks concluded, with United States West Texas Intermediate crude down 1.3 percent at 62.06 dollars per barrel and international benchmark Brent crude off 2.3 percent at 67.03 dollars per barrel.

The United States is seeking a deal to halt Iran’s uranium enrichment, while Tehran insists on preserving that capability even after Israeli and American strikes destroyed key nuclear sites during a 12-day conflict last June. White House press secretary Karoline Leavitt confirmed that military options remained on the table, adding: “For diplomacy to work, of course, it takes two to tango.”

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