Iran declares its designated route through Hormuz the only safe passage for tankers, escalating risks to oil shipping amid heightened tensions.
The US Central Command confirmed striking more than 80 Iranian targets, including over 60 Islamic Revolutionary Guard Corps boats, marking a significant escalation in retaliatory actions. This scale surpasses earlier reports suggesting a four- or fivefold increase in isolated strikes, amplifying concerns over regional stability.
Iran’s military command rejected a memorandum of understanding, citing recent US strikes, reinstated oil sanctions, and ongoing Israeli operations in Lebanon. Tehran now views the truce as void, removing diplomatic off-ramps that markets had hoped would limit further escalation. The Strait of Hormuz, a critical chokepoint for global oil flows, is now explicitly claimed by Iran as under its control.
With both sides publicly committed to further action, the risk premium in oil prices is unlikely to ease soon. Shippers face heightened uncertainty as Iran’s threats to enforce its designated route raise the prospect of attacks on vessels regardless of ceasefire status.