Key facts
- Fresh tensions in the Strait of Hormuz have unsettled markets.
- Brent crude oil prices rose to $83 per barrel.
- Iran reported striking "hostile targets" in the strait.
- An agreement brokered by Iran and Oman for passage through the strait was mentioned.
- Iran's foreign ministry stated security is impacted by the US blockade of its ports.
Markets are on edge due to new tensions in the Strait of Hormuz, impacting earlier optimism about a peace deal between the US and Iran. Oil prices have risen, with Brent crude climbing to $83 per barrel following reports of Iran striking "hostile targets" in the strait after explosions were reported near Qeshm Island. This development occurred despite a reported agreement brokered by Iran and Oman on broad terms for passage through the waterway. Under this new arrangement, ships entering the strait would use a route closer to Iran, while outgoing vessels would use a passage closer to Oman. However, Iran's foreign ministry spokesman, Esmaeil Baqaei, stated that the deal with Oman would not guarantee safe navigation, arguing that security remained impacted by the US blockade of Iran's ports. Tehran officials also indicated that the US was not involved in advancing talks, contradicting White House rhetoric. President Trump commented on the US's actions against Iran, stating he would "rather make a deal" to avoid casualties.