Key Moments
- Iran’s Revolutionary Guard declared the Strait of Hormuz closed and reported firing on two ships, while U.S. officials said commercial traffic continued.
- Brent crude climbed toward USD 95/bbl as markets reacted to new U.S. strikes in Iran and reported Iranian drone and missile attacks on U.S. bases.
- Despite the geopolitical escalation, overnight oil price movements remained relatively contained, with Brent crude edging higher.
Strait of Hormuz Flashpoint Supports Oil Prices
Danske Research Team reports that Iran’s Revolutionary Guard has declared the Strait of Hormuz closed and has indicated that vessels attempting passage could be targeted. According to the report, Iran stated that two ships were fired upon. At the same time, U.S. Central Command noted that commercial ships “was continuing to transit in and out of the Strait”.
These developments have underpinned a move higher in the oil market, with Brent crude advancing toward USD 95/bbl.
Military Actions and Escalating Rhetoric
The research note highlights that “the US launched new strikes on Iranian military assets inside Iran, Iran claimed drone and missile attacks on multiple US bases in Kuwait, Bahrain and Jordan.”
Further escalation was described in the commentary: “Trump grew tired of waiting for his ‘deal’ and has ordered new strikes against ‘multiple’ targets in Iran overnight. In an interview following the strikes, Trump also added that the attacks would continue should a deal not be reached today. According to state-run TV in Iran, the Strait of Hormuz has been completely closed in response.”
Market Reaction in Brent Crude
Oil markets responded to the increased geopolitical risk. As stated in the note, “Oil prices rose on the news, with Brent crude almost at USD 95/bbl.” The research team also observed that “Despite this escalation, price action through the night has been relatively modest although Brent crude is moving higher.”
Key Developments and Market Impact
| Event | Details |
|---|---|
| Strait of Hormuz situation | Iran’s Revolutionary Guard declared the Strait closed, reported firing on two vessels; U.S. Central Command said commercial traffic continued. |
| Military actions | U.S. launched new strikes on Iranian military assets; Iran claimed drone and missile attacks on U.S. bases in Kuwait, Bahrain and Jordan. |
| U.S. policy stance | “Trump grew tired of waiting for his ‘deal’ and has ordered new strikes against ‘multiple’ targets in Iran overnight.” |
| Oil price response | Brent crude moved almost to USD 95/bbl, with relatively modest overnight price action but an upward trend. |
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
