Iran’s Aragchi: No intention to close Strait of Hormuz

Iran’s Aragchi: No intention to close Strait of Hormuz

Iran’s Aragchi: No intention to close Strait of Hormuz

Amid escalating regional tensions following U.S. and Israeli strikes on Iran, Foreign Minister Abbas Araghchi has asserted that Iran has no intention to close the Strait of Hormuz, a critical global energy artery. This statement contrasts with earlier actions by Iran’s Islamic Revolutionary Guard Corps (IRGC), which declared the closure of the strait as a retaliatory measure after the death of Supreme Leader Ayatollah Ali Khamenei in the cross-border attacks.

The Strait of Hormuz, through which approximately 20% of global oil and 20% of liquefied natural gas (LNG) shipments transit daily, remains a focal point of geopolitical and economic concern. In 2024, the waterway handled around 20 million barrels of oil per day, with 84% of crude shipments destined for Asian markets, including China, India, Japan, and South Korea. A prolonged disruption could trigger significant price volatility, with analysts warning of potential oil price spikes exceeding $100 per barrel.

Aragchi’s denial comes as Iran continues to launch ballistic missile and drone attacks on U.S. allies and regional assets, including strikes on bases in Qatar, the UAE, and Israel. Despite these actions, the minister emphasized that Iran’s response is “legitimate” but does not target global energy infrastructure. This aligns with historical patterns where Iran has threatened—but never fully executed—a closure of the strait, often using the threat as a diplomatic lever.

The U.S. military has reinforced its presence in the region, with Central Command reporting successful defenses against Iranian missile and drone attacks. Meanwhile, the European Union’s naval mission, EUNAVFOR ASPIDES, noted Iran’s warning to vessels to avoid the Strait of Hormuz.

Financial markets remain sensitive to developments. While oil prices have stabilized slightly since mid-February, the risk of supply disruptions persists. The U.S. Energy Information Administration (EIA) highlights that alternative routes for Gulf oil exports are limited, with Saudi Arabia and the UAE possessing only 2.6 million barrels per day of bypass capacity.

As Iran’s leadership transitions following Khamenei’s death, the balance between retaliatory posturing and economic pragmatism will shape regional stability. For now, Aragchi’s assurances offer some reassurance to markets, though the situation remains fluid.