Markets remain wary amid Middle East tensions
The ongoing risks in the Middle East has continued to cloud market outlook, as Iran issued a stark warning over US' blockade of the Strait of Hormuz.
IMAGE: Getty Images
Iran has announced a stark warning that it will not guarantee safe vessel movement transit through the Strait of Hormuz, if Washington does not lift its blockade and continues to curb Tehran’s oil exports.
“The security of the Strait of Hormuz is not free. One cannot restrict Iran’s oil exports while expecting free security for others,” Iran’s First Vice President, Mohammad-RezaAref wrote in a post on social media platform X.
The Strait, currently under a US blockade, was compromised again on Saturday after the US seized an Iranian-linked vessel and Tehran targeted commercial vessels in the region, including two India-flagged ships.
Oil prices have felt further upward pressure as threats from Yemen-based Houthi militants resurfaced once again. The Houthis have vowed to close the Bab al-Mandab Strait on the Red Sea if hostilities between the US and Iran continue.
The Bab al-Mandab Strait is another key route to ship Middle Eastern oil to global markets. Blocking the region will cut off alternative options for Saudi Arabia’s oil shipments, according to market analysts.
“Maritime conditions in and around the Strait of Hormuz have deteriorated sharply again, with the brief signal of reopening now overtaken by renewed closure, vessel attacks, and large-scale course reversals,” maritime intelligence firm Windward said.
Shipping activity around the Strait has been disrupted again, with vessels rerouting and operators reassessing transit risks through one of the world’s key oil corridors.
Kuwait has declared a force majeure on crude oil and refined product exports as the US blockade of Hormuz prevented some vessels from entering the Persian Gulf, Reuters reported.
“After the US seized an Iranian-flagged vessel, there will be doubts over planned peace talks,” two analysts from ING Bank said.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
