Global oil prices climbed by more than 2% after renewed military tensions between the United States and Iran heightened concerns over the security of oil shipments passing through the Strait of Hormuz, one of the world’s most important energy trade routes.
The latest escalation has increased fears of a wider regional conflict, with the Strait of Hormuz becoming the focal point of growing military and diplomatic tensions. The narrow waterway carries a significant share of the world’s crude oil exports, making any disruption a major concern for global energy markets.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said Tehran remains engaged in diplomatic contacts with mediators from Qatar, Pakistan and Oman in an effort to prevent further escalation.
Baghaei stated that Iran would not implement the terms of the Islamabad Memorandum unless the United States first fulfilled its own commitments, saying that mutual commitments require mutual compliance.
The latest exchange of military strikes between Washington and Tehran has already unsettled international oil markets, with investors closely monitoring developments affecting shipping through the Strait of Hormuz.
US President Donald Trump said the strategic waterway remains open for international trade despite Iran’s earlier announcement that it had closed the route following an attack on a vessel allegedly travelling on an unauthorised course.
Trump also suggested that the United States could assume responsibility for securing the Strait of Hormuz, arguing that countries benefiting from safe passage should contribute to the cost of protecting the route. He further stated that cargo passing through the strait could be subject to a 20% security fee, while asserting that the waterway would remain open for all nations except Iran.
Iran’s military rejected the proposal, stating that it would not accept any foreign control or interference over the strategic maritime corridor.
Meanwhile, analysts at Goldman Sachs said planned pipeline projects across the Middle East could reduce dependence on the Strait of Hormuz in the future. However, they noted that these alternatives are not expected to become fully operational before 2028.
