Iran says it still controls Hormuz amid currency plunge and oil export slowdown
Iran's military affirmed control of the Strait of Hormuz while the rial hit a record low and oil exports fell, prompting the resignation of the oil minister and statements from officials about reopening the waterway under certain conditions.
Iran's armed forces said on Monday that they continue to control all movements in the Strait of Hormuz, despite recent changes in U.S. tactics. Brigadier General Aziz Jafari, commander of the Khatam al-Anbiya Joint Air Defence Headquarters, stated that "all movements (in Hormuz) are under the control of the armed forces of the Islamic Republic."
The country's oil minister, Mohsen Paknejad, resigned hours before the announcement, citing family and personal reasons. In a video released by Iranian media, he said revenue from oil already sold would still be collected and that the ministry would pursue new strategies to maximise production and maintain exports.
U.S. Treasury Secretary Scott Bessent wrote on X that Iran had not loaded any crude onto tankers in September, adding that the Trump administration was cutting off what he described as Tehran's most vital source of revenue.
Ship-tracking firm Kpler reported that crude exports from the region, excluding Iran, reached 19.5-22.5 million barrels per day in the last week of September, above the pre-war regional average of 18 million barrels per day.
The Iranian rial fell to a record low, with the euro trading above 300,000 tomans on the informal market and the U.S. dollar reaching 270,000 tomans, more than double its level at the start of the year.
Major General Ali Abdollahi, chief of the armed forces general staff, warned that any miscalculation by Israel could lead to a broader conflict, while Foreign Minister Abbas Araghchi told ambassadors that the dispute had no military solution and that negotiations based on justice and fairness were needed. He added that the Strait could be fully reopened within seven days if Tehran's conditions were met and hostile measures were lifted.
Parliament speaker Mohammad Bagher Ghalibaf said Iran had received proposals from Washington through intermediaries but would not accept one-sided demands, emphasizing that the Strait would remain closed until seven conditions based on the Islamabad memorandum were satisfied.