Iran's official media reported on Tuesday a partial and temporary closure of the Strait of Hormuz, widely recognized as one of the world's most critical oil chokepoints. The action coincides with nuclear negotiations between Iran and the United States held in Geneva, Switzerland. Following the talks, oil prices relinquished earlier gains and turned lower.
Iran's official media stated that Iran partially closed the strategically vital Strait of Hormuz for security precautions, while the Iranian Revolutionary Guard Corps was conducting military exercises in the waters. This move occurred against the backdrop of negotiations in Geneva aimed at resolving the ongoing dispute over Iran's nuclear program. This marks the first time Iran has closed part of the Strait's shipping lanes since U.S. President Donald Trump threatened military action against Iran in January. The strait is a crucial international waterway linking Middle Eastern crude producers with major global markets.
Located in the Gulf between Oman and Iran, the Strait of Hormuz is acknowledged as one of the most important oil transit chokepoints globally. According to data from market intelligence firm Kpler, approximately 13 million barrels of crude oil per day passed through the Strait in 2025, accounting for about 31% of total global seaborne crude oil flow.
The temporary closure is part of an Iranian Revolutionary Guard Corps exercise named "Smart Control of the Strait of Hormuz," intended to ensure shipping security. The drill's objectives include enhancing Iran's combat readiness and strengthening its deterrence capabilities.
Following the negotiations, Iranian Foreign Minister Araghchi told reporters that the two sides reached a consensus on guiding principles. He added that this progress does not signify an imminent agreement, noting that significant work remains.
Why Oil Markets are Watching Iran Energy market participants have been closely monitoring the outcome of the U.S.-Iran talks, particularly as both nations have increased their military presence in the region. Latest oil price data showed prices giving up earlier advances and declining. The international benchmark Brent crude April futures fell 1.8% to $67.48 per barrel, while U.S. West Texas Intermediate March futures dropped 0.4% to $62.65 per barrel.
Jacob Larsen, Chief Security Officer at BIMCO, which represents global shipowners, stated that the temporary closure of the Strait of Hormuz might cause minor inconvenience and delays for inbound vessels heading to the Persian Gulf but is not expected to cause major disruption. Larsen said, "The live-fire area designated for this exercise overlaps with the inbound lane of the Strait of Hormuz traffic separation scheme, requiring ships to stay clear of the area for several hours." He added, "Given the regional tensions, commercial shipping is expected to comply with Iran's request and steer clear of the exercise zone."