Oil Prices Rise Amid Ongoing Tensions Over Strait of Hormuz and Expired Iran-U.S. MOU
Oil markets climbed after the memorandum of understanding between the United States and Iran expired, while Iran's parliamentary speaker warned the Strait of Hormuz would stay closed until U.S. demands are met.
Oil prices have risen since Monday as the United States and Iran failed to reach a lasting agreement following the expiration of a memorandum of understanding that had set a deadline for a deal. Iran’s parliamentary speaker, Mohammad Bagher Qalibaf, said the Islamic Revolutionary Guard Corps will keep control of shipping in the Strait of Hormuz until the United States meets a list of conditions, including lifting the blockade, releasing frozen assets, ending oil sanctions and halting military threats.
The United Kingdom Maritime Trade Operations reported that a vessel transiting the strait was struck by an unknown projectile off the coast of Oman, killing one crew member and damaging the engine room. The remaining crew received assistance from the Omani Coast Guard, and no environmental impact has been reported.
President Donald Trump said Tehran wants a deal but is unwilling to accept terms he considers necessary, emphasizing that Iran must not acquire a nuclear weapon. The 60-day cease-fire between the two countries ended on Monday, with both sides maintaining firm positions on Iran’s nuclear program and the status of the strait.