Iran's military warned that US bases worldwide would become targets if Washington uses nuclear weapons, while Tehran insists no vessel can transit the Strait of Hormuz without its permission — directly contradicting President Donald Trump's claim of full US control.
Iran's military warned that US bases worldwide would become targets if Washington uses nuclear weapons, while Tehran insists no vessel can transit the Strait of Hormuz without its permission — directly contradicting President Donald Trump's claim of full US control.
Iran's armed forces said no ship can pass safely through the Strait of Hormuz without Tehran's permission, directly rebutting Trump's claim of full US control over the waterway that carries about 20% of global oil trade.
"The opening of the strait is subject to other conditions, including compensation for the US's violations of the Islamabad Agreement," Foreign Minister Abbas Araghchi said, referring to a June memorandum that collapsed within a month over disputes about control of the chokepoint.
Oil flows through Hormuz fell to 14.6 million barrels a day in the first quarter of 2026 from more than 20 million in each quarter of 2025, while LNG shipments dropped to 7.3 billion cubic feet a day from 10.1 billion, according to US Energy Information Administration data. Brent settled above $83 a barrel, notching a third straight weekly loss, while gold held near record highs as investors sought haven assets.
The standoff leaves global energy markets exposed to a chokepoint that moved about 20.9 million barrels a day in the first half of 2025 — roughly a quarter of global maritime oil trade — with China, India, Japan and South Korea accounting for 74% of those flows.
Iran's military asserts full control
The Khatam al-Anbiya Central Headquarters, which commands Iran's air defenses, said in a statement carried by the Islamic Republic News Agency that any commercial vessel or tanker transiting Hormuz without Iranian permission and supervision "cannot pass safely." Basij militia chief Hossein Taeb echoed the position, saying the strait is "under Iran's control and management."
The statements came a day after Trump posted on social media that the US "completely controls" the Strait of Hormuz and that "Iran can do nothing about it." Araghchi responded Thursday that Washington faces a "greater miscalculation" on Hormuz and warned US officials to "beware of fake intelligence."
The dispute has moved beyond whether the strait reopens to who manages shipping and decides which vessels may pass. Iran has used the conflict to charge tolls on oil tankers and fire on ships crossing without permission, while the US maintains a naval blockade that Trump said allows only vessels permitted by American forces through the waterway.
Negotiations fall short of a reopening
Iran and Oman are "very close" to an agreement on a temporary maritime transit route, Araghchi said, but Tehran has made clear the bilateral arrangement would not by itself reopen the strait. Iran's demands include lifting the US naval blockade, withdrawing American forces from the region, removing sanctions and releasing frozen assets, according to Mohammad Bagher Zolghadr, who heads the Supreme National Security Council.
The last time the waterway faced a comparable closure, after attacks on tankers near the strait in 2019, Brent spiked about 15% within weeks before easing as supply fears faded. This disruption has been deeper and longer, with Abu Dhabi National Oil Co. reporting 15 of its vessels struck since the conflict began, one crew member killed and 20 injured.
Any final agreement requires approval from Supreme Leader Mojtaba Khamenei, who has rarely appeared in public since succeeding his father Ali Khamenei after the February US-Israel attack. Iranian officials say reaching him takes time, potentially delaying any announcement. The Houthis, meanwhile, claimed a strike on Saudi Aramco's Jazan refinery, adding to shipping risks around the Red Sea.
For energy markets, the question is whether Washington accepts Tehran's conditions for a full reopening or continues to enforce its blockade. If talks fail, oil flows through Hormuz could remain near current depressed levels, keeping Brent elevated and adding to inflationary pressure across Asia's largest importers.
This article is for informational purposes only and does not constitute investment advice.
