Iran asserts full control over Strait of Hormuz amidst US tensions

Iran’s Foreign Ministry spokesman, Nasser Baghaei, declared that the Strait of Hormuz will remain under Iran’s full control. This statement reinforces Iran’s ongoing assertions of authority over the strategic waterway, a critical chokepoint for global oil and gas exports. This development occurs amidst heightened tensions between Iran and the United States, with Iran linking passage rights to broader negotiations. The statement appears to reflect Iran’s firm stance in the ongoing diplomatic standoff, potentially impacting international shipping and discussions regarding the strait’s management. Key Takeaways Iran’s declaration appears to suggest a continuation of its assertive policy over the Strait of Hormuz, consistent with restricting passage. Market pricing suggests decreased expectations for a US-Iran agreement to restore normal traffic through the strait by the September 15 deadline. Recent developments may indicate challenges in diplomatic negotiations, reflected in the market’s low probability of a near-term resolution. What to Watch Observers should monitor upcoming statements from the U.S. and Iranian officials, particularly any indication of resumed negotiations or shift...